admin Global markets stumbled on Wednesday as renewed trade tensions between the United States and China triggered a broad selloff in Asian and European shares, while U.S. stock futures also dipped. The immediate catalyst was a U.S. directive imposing new export licensing requirements on Nvidia and AMD’s advanced artificial intelligence chips bound for China. Nvidia’s shares dropped 6% in after-hours trading after disclosing that the move could cost the company $5.5 billion in potential revenue.
Analysts view the restrictions as a significant escalation in the tech conflict between Washington and Beijing. Market strategist Daniel Ives of Wedbush Securities noted that the latest export controls underscore the deepening divide in the AI chip sector and could signal the beginning of a prolonged standoff. Simultaneously, former President Donald Trump has ordered a probe into potential new tariffs on critical mineral imports, following ongoing reviews related to pharmaceuticals and semiconductors.
European equities responded with declines, as the STOXX 600 fell 0.9% in early trade. Futures for the U.S. S&P 500 slipped 0.7%, while Nasdaq futures dropped 1.3%. Asian stocks also turned negative, with the MSCI Asia-Pacific ex-Japan index falling 1%, snapping a four-day rally. While Chinese blue chips managed a 0.3% gain, the Hong Kong Hang Seng index plunged 1.9%.
Gold Surges to Record as Dollar Slips and Yields Fall
Amid the rising uncertainty, gold rallied to a new record high of $3,318 per ounce, reflecting investor demand for safe-haven assets. Australian bank ANZ revised its year-end gold forecast upward to $3,600, citing ongoing geopolitical risks.
The U.S. dollar index dropped 0.5% to its lowest since April 2022, while traditional safe currencies like the Japanese yen and Swiss franc appreciated. Meanwhile, global bond markets saw renewed interest, with German 10-year bund yields falling to their lowest since early March. Investors now await a key speech from Federal Reserve Chair Jerome Powell for clues on the central bank’s stance amid a volatile macroeconomic backdrop.
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