📉 Stock Market Crashes as Powell Warns on Tariffs, Nvidia Sinks 7%
US stocks plunged as Powell warned of tariff-driven inflation and slower growth. Nvidia also sank 7% on export curbs. Here's what it means for traders.
🚨 What Just Happened?
US markets got smoked on Wednesday as Federal Reserve Chair Jerome Powell delivered a cautionary note on the economic fallout from Trump’s tariffs, warning they could cause higher inflation and slower growth.
At the same time, Nvidia (NVDA) tumbled over 7% after disclosing that new US restrictions on its AI chip exports to China would result in a massive $5.5 billion hit to earnings.
📉 Major Index Performance
- Nasdaq Composite (QQQ): -3.07%
- S&P 500 (SPY): -2.24%
- Dow Jones (DJI): -1.7% (down ~700 points)
- Nvidia (NVDA): -6.87% at close, -1.09% after hours
This marked the worst day in weeks for Wall Street, driven by a toxic mix of trade war escalation, macroeconomic uncertainty, and tech sector vulnerability.
💬 Powell’s Warning Hits Hard
In a speech delivered from Chicago, Jerome Powell stated:
“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension.”
He emphasized that the Fed will wait for greater clarity before adjusting rates and expressed concern that Trump's tariffs could derail progress on both inflation control and economic growth.
🇨🇳 Nvidia Caught in the Crossfire
Nvidia dropped after revealing that new restrictions on selling its AI chips to China could severely impact revenue:
- 💸 $5.5 billion charge expected
- 😬 Trade war pressures adding risk to tech growth
- 🔍 AI-related exports becoming a geopolitical chess piece
This comes just days after Nvidia stock was climbing off AI optimism — a stark reversal for traders banking on tech resilience.
🛍️ Consumers React — and So Does Gold
- Retail sales jumped 1.4% in March, the fastest pace in over two years — driven by consumers front-loading purchases before tariffs kick in.
- Gold soared to new record highs as investors scrambled for safe haven assets.
🧠 What Traders Need to Watch
- Rate Decision Uncertainty — Powell's tone suggests caution but not clarity.
- Tech Vulnerability — Nvidia is the canary in the AI coal mine.
- China Trade Talks — The next 90 days are key, but China will play hardball.
🧭 Short-term volatility is high, but long-term investors should be analyzing quality tech stocks under pressure.
🔗 Further Reading
Get the full story from Yahoo Finance.
📊 Interactive Nvidia Chart (Daily)
🧠 Final Take
With the Fed on pause, Nvidia reeling, and consumers rushing to spend, this is shaping up to be a defining moment in the 2025 market narrative.
Stay sharp — volatility is the game, and knowledge is your edge.
