US stocks declined on Wednesday as markets reacted to a cautious outlook from Nvidia that weighed on the broader tech sector.
All three major indices opened the day deep in the red.
The Dow Jones Industrial Average lost 180 points, or 0.4%, while the S&P 500 fell 0.97%. The Nasdaq Composite dropped 1.73%.
Since the administration introduced its “reciprocal” tariffs on April 2, major indices have each declined by over 4%.
The broader market remains cautious as the tariff environment remains unsettled.
While exemptions on automotive import duties are reportedly being discussed, no definitive policy has been announced.
The status of recently paused tariffs on consumer electronics—including smartphones and computers—also remains unclear, leaving tech firms and investors in limbo.
Meanwhile, the Trump administration appears to be preparing the ground for new trade barriers.
Pharmaceutical products, semiconductors, and critical minerals are next in line for potential levies, which could have ripple effects across healthcare, tech, and manufacturing sectors.
The broader trade landscape is equally opaque. Although the president has referenced ongoing negotiations with several trading partners outside of China, details are scarce following the 90-day freeze on most so-called “reciprocal” tariffs last week.
The market remains wary of both the scope and timing of any further trade actions.
WTO’s warnings on tariffs
The World Trade Organization (WTO) issued a warning Wednesday, saying the global trade outlook has worsened significantly following President Donald Trump’s tariff measures.
In its latest Global Trade Outlook and Statistics report, the WTO noted, “The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty.”
It now expects world merchandise trade volumes to contract by 0.2% in 2025, factoring in the current tariff environment and a temporary 90-day suspension on some levies.
A modest 2.5% recovery is projected for 2026.
The report highlighted North America as likely to see the steepest drop, with exports forecast to decline 12.6% this year.
The WTO also flagged “severe downside risks,” cautioning that further tariff escalation and rising policy uncertainty could trigger a sharper 1.5% fall in global goods trade, with export-reliant, least-developed economies at particular risk.
Nvidia takes tech stocks lower
Nvidia shares dropped 6% after the company disclosed a $5.5 billion quarterly charge tied to restrictions on exporting its H20 GPUs to China and other countries, following new US licensing requirements.
The news dragged other chipmakers lower, with AMD falling over 6% and Micron Technology down 3%.
ASML’s weak earnings added to the sector’s losses, with its US-listed shares off more than 5%.
Major tech names also slipped, as Meta fell over 2%, while Alphabet and Tesla each declined more than 1%.
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