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Stocks fell sharply on Wednesday, as a stark warning from Nvidia roiled global tech and concerns from Federal Reserve Chair Jerome Powell about the economic impact of tariffs raised alarm among skittish investors.
The Dow Jones Industrials cratered 699.63 points, or 1.7%, to greet Wednesday’s closing bell at 39,669.33.
The S&P 500 decreased 120.92 points, or 2.2%, to 5,275.74, dragged down by the information technology sector.
The NASDAQ Composite slid 516.01 points, or 3.1%, to 16,307.16
Shares of Nvidia sank 6.9%, on track for its worst day since January after the chip giant said it will post a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations.
The company said in a filing that the U.S. government required a license to send chips from the U.S. to China.
The stock was also under pressure after the New York Times reported that President Donald Trump’s administration was taking steps to crack down on Chinese startup DeepSeek, to which Nvidia provides chips.
Big tech also felt pressure. Meta Platforms slid more than 2%, while Google-parent Alphabet and Tesla each declined by more than 1%.
Other chipmakers followed Nvidia lower. AMD slid more than 8%, while Micron Technology slid more than 3%. Adding to the broader chip decline was a disappointing earnings report from ASML, whose U.S.-listed shares plunged more than 7%.
Prices for the 10-year Treasury were up Wednesday, easing yields to 4.28% from Tuesday’s 4.33%. Treasury prices and yields in opposite directions.
Oil prices gained $1.41 to $62.74 U.S. a barrel.
Prices for gold jumped $114.30 to $3,354.80 U.S.