Global Markets Reel Amid Tech Trade Tensions and Gold Rush

Global stock markets, including Asian and European shares, fell as U.S. issued new export restrictions on Nvidia and AMD chips to China. Nvidia shares plunged 6%, while gold reached record highs. Concerns over U.S. and China trade tensions dominate market sentiment, affecting stock and bond yields globally.

Global stock markets faced a downturn on Wednesday, with Asian, European, and U.S. stock futures taking a hit. This market unease comes as the United States imposed new export restrictions on Nvidia's H20 and AMD's MI308 artificial intelligence chips destined for China. In response, Nvidia's shares dropped 6% in after-hours markets, projecting a $5.5 billion revenue loss, according to company forecasts.

Analysts like Daniel Ives of Wedbush Securities warn that these restrictions signify a deepening tech trade conflict between the U.S. and China, echoing broader worries in the sector. President Trump's investigation into tariffs on critical mineral imports compounds the tension, alongside China's moves to halt Boeing purchases.

Amidst the economic uncertainty, gold surged to a record $3,318 per ounce as investors pulled away from riskier assets. This movement also affected the U.S. dollar, which dropped by 0.5%. Safe-haven currencies like the Japanese yen and Swiss franc rallied, with the Bank of Japan signaling potential interventions due to possible impacts on the Japanese economy.

(With inputs from agencies.)