Losses on US Stock Markets Widen
The US stock markets expanded their losses on Wednesday, influenced by concerning remarks from Fed Chair Jerome Powell regarding the economic situation and the effects of tariffs on global trade.
Background and Causes
The tariff policy and global trade play a key role here. The World Trade Organization (WTO) forecasts a decrease in global trade volume of at least 0.2 percent for 2025, with a possible low of up to 1.5 percent. The US tariffs are primarily blamed for this, having particularly negative effects on the US itself and Canada. A moderate recovery in trade is only expected for 2026.
The technology sector is also heavily impacted. Weak order intake at the chip machinery manufacturer ASML and tightened restrictions on AI chip deliveries to China by the US government have significantly burdened the market. Nvidia shares fell by almost seven percent on the Nasdaq as the company anticipates substantial losses.
Warnings from Jerome Powell, although not detailed in the sources, are typically associated with concerns about inflation or an impending recession, significantly influencing market expectations.
Market Development
The US stock indices show a clear downward trend: The Nasdaq lost about two percent, the Dow Jones Industrial slightly declined, and the S&P 500 dropped by about one to two percent. Technology stocks, including Nvidia and AMD, were particularly affected. Industry giants like Micron and Broadcom also saw losses.
However, there were exceptions: Shares of Travelers rose due to better quarterly results. Hertz experienced an upward trend after Pershing Square Capital Management announced a stake.
Overall, these developments indicate a volatile market situation full of uncertainties caused by political decisions in trade and economic forecasts. Investors face challenges in planning their investments in this environment shaped by geopolitical tensions and regulatory risks.