Nvidia Drags Wall Street Down, Gold Defies Gravity Ahead Of Powell Remarks: What's Driving Markets Wednesday?

U.S. major indices traded lower at midday Wednesday, pressured by sharp declines in tech and semiconductor stocks after Washington tightened chip export restrictions to China.

The U.S. government has barred Nvidia Corp. NVDA from selling its H20 chips to China — a move that could wipe out an estimated $5.5 billion from the company's projected quarterly revenue. Nvidia shares slid nearly 7%.

Other chipmakers also felt the heat. Advanced Micro Devices Inc. AMD dropped 6% as its MI308 chips fall under the new licensing requirements.

The iShares Semiconductor ETF SOXX sank 3.4%, extending the sector’s losses. Adding to the drag, Dutch chip equipment giant ASML Holding N.V. ASML missed quarterly revenue estimates, sending its shares down 5%.

On the macro front, March retail sales surprised to the upside, rising 1.4% month-over-month — topping forecasts of 1.3% and marking the strongest monthly gain since January 2023.

Meanwhile, the U.S. dollar saw renewed selling pressure, with the dollar index dipping back below 100. Treasury yields were little changed, with the 10-year yield holding steady near 4.33%.

Gold continued its stellar run, surging 2.5% to a fresh record high of $3,320 per ounce as demand for safe-haven assets remains robust.

In commodities, oil prices rebounded sharply, with WTI crude climbing 2% to $62 a barrel. Bitcoin BTC/USD also edged up 1.3% to around $84,500.

All eyes are now on Fed Chair Jerome Powell, who is set to speak at the Economic Club of Chicago later this afternoon.

Wednesday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY fell 0.9% to $532.68.
• The SPDR Dow Jones Industrial Average DIA eased 0.1% to $403.09.
• The tech-heavy Invesco QQQ Trust Series QQQ tanked 1.7% to $450.31.
• The iShares Russell 2000 ETF IWM fell 0.5% to $185.84.
• The Energy Select Sector SPDR Fund XLE outperformed, up 1.1%; the Technology Select Sector SPDR Fund XLK lagged, down 2.2%.

S&P 500’s Top 5 Gainers On Wednesday

S&P 500’s Worst 5 Losers On Wednesday

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