Wall Street Tumbles as U.S. Chip Export Curbs to China Hit Nvidia, AMD; Nasdaq Sinks Nearly 2%

New U.S. restrictions on AI chip exports to China wipe billions off tech stocks, with Nvidia plunging nearly 7%; gold rallies to record high, Treasury yields ease.

April 16, 2025: U.S. stock markets dropped sharply on Wednesday after the Biden administration announced new restrictions on advanced chip exports to China, sending shares of Nvidia, AMD, and other tech giants into a tailspin.

Also Read: US Halts Nvidia H20 Chip Exports to China Amid AI Security and Trade Tensions

The Dow Jones fell 0.41%, the S&P 500 dropped 1.05%, and the Nasdaq Composite slid 1.83%, with tech stocks bearing the brunt of the sell-off.

Also Read: Sensex Gains for 3rd Consecutive Session — 10 Key Takeaways

At the opening bell:

• Dow Jones: -189.5 pts (0.47%) to 40,179.49
• S&P 500: -60.9 pts (1.13%) to 5,335.75
• Nasdaq Composite: -323.5 pts (1.92%) to 16,499.69

Chip Stocks Crater After Export Curbs

The U.S. Commerce Department’s new export licensing norms now apply to Nvidia’s H20 and AMD’s MI308 AI chips, which cannot be shipped to China without approval.

Also Read: Trump Slaps Up To 245% Tariff on Chinese Imports in Major Escalation of US-China Trade War

• Nvidia: -6.98% (facing $5.5 billion in potential charges)
• AMD: -6.02% (expects up to $800 million in charges)
• Micron Technology: -1.4%
• Broadcom: -2.43%
• Intel: -2.57%

The move aims to curb China’s access to cutting-edge semiconductor technology amid growing geopolitical tensions.

Broader Tech and Market Impact

• Apple: -2.22%
• Microsoft: -1.93%
• Meta Platforms: -2.35%
• Alphabet (Google): -1.05%
• Tesla: -1.5% (impacted by tariffs on Chinese auto parts)
• Boeing: -0.15%

Meanwhile, United Airlines gained 2.5% after beating Q1 profit expectations.

Treasury Yields & Commodities

• 10-year Treasury yield dipped slightly to 4.33% from 4.35% on Tuesday, reflecting a move toward safer assets.
• Gold prices surged, touching a record high of $3,317.90, with spot gold last seen at $3,310.82, up 2.6%, and futures at $3,326.40.
• Silver rose 2.2% to $33.01, while platinum edged up 0.5% to $963.76. Palladium fell 0.4% to $968.04.

Oil Prices Rise Amid Output Cut Plans

• Brent crude: +1.08% to $65.37/barrel
• WTI crude: +1.14% to $62.03/barrel
  Iraq’s announcement to reduce oil output in April contributed to the price rally.

Tags:

Wall Street, Nasdaq, Dow Jones, S&P 500, Nvidia, AMD, chip exports, China tech curbs, AI chip ban, US-China trade war, tech stocks, gold rally, oil prices, treasury yields, stock market today