Losses on the US Markets: Insights and Backgrounds
The US stock markets experienced a significant decline on Wednesday, which intensified throughout the trading day. The technology sector was particularly affected, showing a troubling trend. The Nasdaq 100 fell by more than 3 percent, the Dow Jones lost around 1.5 percent, and the S&P 500 dropped over 2 percent.
Warnings from the Fed and Their Impact
A crucial factor for the negative sentiment in the markets was the warning from Fed Chairman Jerome Powell. He emphasized that US import tariffs could have long-term negative effects on inflation, which increased pressure on the stock markets further.
Impact of Trade Restrictions
Another burden was the surprisingly weak order intake at ASML, the world’s largest chip machine manufacturer. Moreover, the US government’s restrictions on shipments of AI chips to China exacerbated the situation, particularly affecting the technology sector. Semiconductor companies like Nvidia and AMD recorded significant losses. Nvidia faces losses of about 5.5 billion US dollars due to the export ban, resulting in a stock price drop of approximately 8.5 percent. AMD estimates losses of up to 800 million dollars and also lost more than eight percent in value.
These developments highlight the negative influence of the trade conflict with tariffs and export restrictions on major US technology companies, which are suffering particularly despite their market significance.
Positive Exceptions
Despite the overall negative developments, there were also exceptions. For instance, shares of the car rental company Hertz rose by over 19 percent following the announcement of a significant investment by hedge fund investor Bill Ackman. Insurers like Travelers also reported slight gains.
In summary, there is a picture of significant losses on the US markets, especially in the technology sector, due to economic and political tensions.