Stocks dropped on Wednesday after Nvidia announced a $5.5 billion charge due to a new Trump administration rule on tech-related exports. This caused Nvidia shares to fall more than 5%, leading to declines in the tech-heavy Nasdaq and other indices. The charge is related to compliance with regulations for selling tech products to China. Nvidia’s H20 chips, which generated significant revenue in 2024, require a new export license under the new rule to prevent their use in Chinese supercomputers. The administration has indicated that the rule will be in effect indefinitely.
Nvidia, a major player in the tech industry, has seen its shares decline by 23% year to date due to concerns related to Trump’s trade war. This decline has had a broader impact on the market, with indices like the S&P 500 and Nasdaq down around 6%, and the Dow down by about 5% since President Trump’s announcement of new tariffs on April 2nd. Nvidia’s size and influence in the tech sector make it a bellwether for the broader market, and its struggles have contributed to the overall market sell-off. The tech industry as a whole has been impacted by trade tensions and regulatory changes, leading to increased volatility in the market.
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