KEY TAKEAWAYS
- The major U.S. equities indexes dropped at midday Wednesday, as semiconductor stocks tumbled amid worries about new chip export restrictions to China.
- Semiconductor stocks sank after Nvidia and AMD warned they would take charges after the Trump administration moved to curb the chipmakers’ exports to China.
- Newmont, Gold Fields and other miners’ shares surged as the price of gold climbed to a fresh record high.
The major U.S. equities indexes lost ground at midday Wednesday, as semiconductor stocks tumbled amid worries about new chip export restrictions to China.
The tech-heavy Nasdaq and the S&P 500 were down 1.9% and 1%, respectively, while the Dow Jones Industrial Average slipped 0.3%.
Semiconductor stocks sank after Nvidia (NVDA) and Advanced Micro Devices (AMD) warned they would take a hit after the Trump administration moved to curb the chipmakers’ exports to China. Nvidia, AMD, and Broadcom (AVGO) shares were all lower.
ASML Holding (ASML) shares dropped after the Dutch manufacturer of semiconductor-producing machinery reported worse-than-expected earnings and issued a soft outlook.
Abbott Laboratories (ABT) shares jumped after the drug and healthcare products maker reported better-than-expected quarterly results.
United Airlines (UAL) rose after it reported that it swung to a profit in the first quarter on record revenue.
Newmont (NEM), Gold Fields (GFI), and other miners’ shares surged as the price of gold climbed to a fresh record high as investors flocked to safe haven assets amid economic uncertainty.
Lyft (LYFT) shares rose as Oppenheimer initiated coverage of the rideshare company with an “outperform” rating.
Crude oil futures rose and the yield on the 10-year Treasury note edged lower. The U.S. dollar lost ground against the euro, yen and pound. The price of Bitcoin climbed, while prices for many other major cryptocurrencies fell.