AI Chip Restrictions Shake Markets Amid U.S.-China Trade Tensions

Global markets tumbled as U.S. export restrictions on AI chips to China hit Nvidia and AMD. Gold soared to a new high, while the dollar weakened. President Trump ordered a probe into tariffs on minerals, intensifying trade tensions. Investors moved towards safer assets amid growing uncertainty.

Asian and European shares fell on Wednesday as U.S. stock futures dropped following new U.S. restrictions on Nvidia's AI chip sales to China, leading to broader market jitters. The move impacted Nvidia's stock significantly, exacerbating the ongoing global trade conflicts.

The U.S. government's decision to introduce tighter export licensing requirements for AI technology, affecting companies like Nvidia and AMD, is perceived as a significant escalation in the trade tussle with China. Nvidia reported potential losses of $5.5 billion, causing its shares to slump 6% in after-hours trading.

Meanwhile, gold emerged as a safe-haven asset, climbing to a record high of $3,318 per ounce, buoyed by market uncertainties. The dollar weakened as investors turned cautious. The trade tensions have also prompted reactions from central banks, with Japan hinting at policy adjustments if tariffs impact their economy.

(With inputs from agencies.)