Tech Stocks Tumble Amid US Export Controls and Trade Tensions

Global stock markets weakened as US export controls on AI chips impacted major technology companies like Nvidia. Meanwhile, trade concerns resurfaced with a US probe into critical mineral imports. The US bond market showed signs of stability amidst the ongoing uncertainty over President Trump's tariffs.

World shares mostly fell on Wednesday as US export controls on advanced computer chips, crucial for AI technology, led to a sell-off in technology stocks including Nvidia. With tighter export regulations impacting sales, Nvidia's premarket shares dropped 5.9%, while rival AMD shares fell by 6.7%.

Simultaneously, the revived specter of a trade war loomed after the Trump administration initiated an investigation into crucial mineral imports. European markets saw declines, with the UK's FTSE 100 down 0.3% and Germany's DAX decreasing by 0.7%. China's markets also experienced a downturn despite an annual growth rate of 5.4% in the first quarter of 2024.

In Asia, market indices in Tokyo, Hong Kong, and South Korea registered declines, while some stability was noted in India and Bangkok. Concurrently, the US bond market showed resilience, providing some investor reassurance amid trade tensions. Market confidence was shaken, yet the treasury yield steadied, indicating a semblance of stability.

(With inputs from agencies.)