XDC Network (xdc) 
U.S. Stocks Drop Amid Nvidia’s $5.5 Billion China-Related Charges and Inflation Concerns
On Wednesday, U.S. stocks experienced a significant decline as investors reacted to new U.S. restrictions on chip exports to China and Federal Reserve Chair Jerome Powell’s warnings about the potential economic impact of ongoing tariff policies. Concerns about inflation and slower growth added to the pressure on financial markets.
Market Performance
The S&P 500 fell by approximately 2.2%, while the Dow Jones Industrial Average dropped 1.7%. The Nasdaq Composite experienced the steepest decline, sliding around 3% and approaching bear market territory. Losses in the technology sector played a major role in driving the Nasdaq’s downturn.
Nvidia Faces $5.5 Billion Charge
Nvidia shares plummeted nearly 10% after the company announced it would face a $5.5 billion charge due to new export restrictions imposed by the U.S. government. The curbs, which affect Nvidia’s H20 graphics processors—a key product for the Chinese market—have raised concerns about the company’s future earnings potential.
Other semiconductor companies also saw declines. AMD dropped 8%, Micron fell by 3%, and ASML shares were down over 7% following weak earnings reports. The chip sector continues to face challenges as geopolitical tensions and regulatory changes impact operations.
Bitcoin Shows Resilience
Amid the stock market sell-off, Bitcoin demonstrated resilience, remaining near the $84,000 range. The cryptocurrency’s performance highlights its growing appeal as an alternative asset during periods of market turbulence.
Powell’s Inflation Concerns
In a speech to the Economic Club of Chicago, Federal Reserve Chair Jerome Powell addressed the economic risks posed by tariffs. Powell emphasized that tariffs could lead to higher inflation and slower economic growth, creating challenges for the central bank’s dual mandate of stable prices and full employment.
“The Fed may face a challenging scenario where our goals of stable prices and full employment come into conflict,” Powell remarked.
Powell also stated that the central bank would wait for clearer data before making adjustments to interest rates, reflecting the uncertainty surrounding current trade policies.
Retail Sales Surge Ahead of Tariffs
Retail data revealed a 1.4% increase in March sales, marking the strongest growth in two years. Analysts suggest that consumers are rushing to make purchases before tariffs take effect, which could result in higher prices for imported goods.
While the Trump administration delayed tariff implementation for certain countries, China was notably excluded. Treasury Secretary Scott Bessett mentioned that further clarity on trade policy might emerge within 90 days. However, China has indicated that future negotiations would require meeting specific conditions.
The combination of tariff concerns, inflation risks, and regulatory changes continues to weigh heavily on financial markets. Investors should remain vigilant and consider diversifying their portfolios to navigate this period of uncertainty.
