U.S. stock index futures fell on Tuesday evening, with technology falling the most after artificial intelligence major Nvidia flagged a sizable earnings hit from tighter government curbs on exports to China.
Broader markets were pressured by persistent uncertainty over President Donald Trump’s plans for more trade tariffs, especially on electronics and pharmaceuticals. Trump’s ongoing trade war with China also kept investors on edge.
Futures fell after a mildly negative session on Wall Street, as optimism over a brief reprieve in Trump’s tariffs ran dry, while markets remained uncertain over his plans for more duties.
Anticipation of more first quarter earnings, as well as more cues on the U.S. economy, also kept risk appetite in check.
S&P 500 Futures fell 0.8% to 5,384.0 points, while Nasdaq 100 Futures fell 1.3% to 18,718.75 points by 19:47 ET (23:47 GMT). Dow Jones Futures fell 0.4% to 40,414.0 points.
Nvidia dips on $5.5 bln charge, tech follows
NVIDIA Corporation (NASDAQ:NVDA) slid 6% in aftermarket trade after the artificial intelligence major said the government had further restricted exports of its H20 chips to China.
The company will now require a license to export its H20 chip to China. The H20 chip is Nvidia’s most popular chip in China, and is designed to be in line with prior export controls imposed by the Biden administration.
Nvidia’s announcement spooked other chipmakers and technology stocks, amid concerns over even more export restrictions on China, which is embroiled in a bitter trade war with Washington.
Other chipmakers and AI stocks fell after Nvidia’s announcement. Intel Corporation (NASDAQ:INTC) and Broadcom Inc (NASDAQ:AVGO) shed 1.9% and 3.4%, respectively, while major Nvidia supplier TSMC (NYSE:TSM) fell 2%.
Nvidia rival AMD (NASDAQ:AMD), which is likely to face similar restrictions, fell nearly 7%.
Losses in chipmakers spooked the broader tech sector, with majors such as Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) losing more than 1% each. Investors were also on edge over the impact of a U.S.-China trade war on tech supply chains, with an escalated conflict likely heralding more headwinds.
Wall St pressured by trade uncertainty; earnings, econ. data awaited
Wall Street indexes ended slightly lower on Tuesday, as investors remained on edge over Trump’s plans for more trade tariffs. A bitter trade war between the U.S. and China also rattled markets, with Trump stating that the ball was now in China’s court to begin negotiations.
Markets feared that a prolonged trade war will dent economic growth and potentially trigger a recession this year.
The S&P 500 fell 0.2% to 5,396.60 points, while the NASDAQ Composite fell slightly to 16,823.17 points. The Dow Jones Industrial Average fell 0.4% to 40,368.96 points.
Still, some positive first-quarter earnings helped lift Wall Street in recent sessions. More companies are set to report in the coming days, with chip major ASML Holding NV (AS:ASML), pharma firm Abbott Laboratories (NYSE:ABT), and insurer Progressive Corp (NYSE:PGR) are set to report on Wednesday.
On the economic front, U.S. retail sales and industrial production data is due on Wednesday. Federal Reserve Chair Jerome Powell is also set to speak later in the day.
