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TAKEAWAYS KEY
- The major U.S. stock indexes fell Wednesday at midday, as fears over new restrictions on chip exports from China caused semiconductor stocks to plummet.
- Semiconductor stocks fell after Nvidia warned that it would charge after the Trump Administration moved to restrict the chipmakers’ exports to China.
- Newmont, Gold Fields et other miners saw their shares soar as the gold price reached a record high.
The major U.S. equity indexes fell at midday on Wednesday as semiconductor stocks plunged amid fears about new restrictions on chip exports 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 fell after Nvidia, AMD and Advanced Micro Devices warned that their exports to China would be affected by Trump’s decision to limit them. 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 rose after the drug-and-healthcare-products maker reported better than expected quarterly results.
United Airlines (UAL), which reported a record-breaking revenue and a swing to a profit, rose.
Newmont (NEM), Gold Fields, (GFI), as well as other miners’ stocks surged as gold prices reached a new record high. Investors flocked to safe-haven assets amid economic uncertainty.
Oppenheimer’s “outperform rating” on Lyft (LYFT), the ride-sharing company, has boosted shares of Lyft.
Crude oil futures rose, and the yield on 10-year Treasury notes edged down. The U.S. Dollar lost ground against the euro and yen. Bitcoin’s value increased, while many other major crypto currencies fell.
