Global shares fell sharply on Wednesday as the US imposed new export licensing requirements for sales to China, affecting tech companies like Nvidia and AMD. The move has raised concerns about access to global tech hardware being further choked off.
The Dow Jones Industrial Average dropped 1.7%, while the S&P 500 fell 2.2%. Tech-heavy Nasdaq Composite slumped 3.1% as investors became increasingly cautious about the economic outlook. US Federal Reserve Chair Jerome Powell said the Fed would wait for more data on the economy’s direction before changing interest rates.
Gold prices soared to a record high of $3,339 per ounce, up 3.5%, as investors sought safe-haven assets amid market volatility. The dollar index slid 0.7% to its lowest since April 2022, while the Japanese yen and Swiss franc rallied around 0.8% and 1.2%, respectively.
US Treasury yields fell 4 basis points to 4.283%, as traders bet on a potential pause in rate hikes. The World Trade Organization sharply cut its forecast for global merchandise trade from solid growth to a decline, citing further US tariffs and spillover effects.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-16