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S&P 500 futures slipped early Wednesday as investors assessed a stark warning from Nvidia that pressured global tech.
Futures for the Dow Jones Industrials slid 42 points, or 0.1% to 40,533.
Futures for the much broader index dropped 41.25 points, or 0.8%, to 5,387
Futures for the NASDAQ Composite dumped 264.25 points, or 1.4%, to 18,696
Shares of Nvidia dropped more than 6% after the chip giant said it will post a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations. The company said in a filing that the U.S. government required a license to send chips from the U.S. to China.
Other chipmakers followed Nvidia lower. AMD slid more than 6%, while Micron Technology dropped 4%. Adding to the broader chip decline was an earnings miss from ASML, with U.S.-listed shares losing more than 4%.
Big tech also felt pressure. Meta Platforms slid more than 1%, while Google-parent Alphabet and Tesla each declined by more than 2%.
Wednesday’s action comes as investors try to navigate rising global trade tensions. The U.S. has announced tariffs on many countries, including China.
Some of those levies were put on hold for 90 days last week, though duties on Chinese imports were not included in that halt.
Over the weekend, President Donald Trump announced an exemption on tariffs against smartphone and PC imports, though he later hinted that this was only temporary.
Since Trump administration first announced its “reciprocal” tariffs on April 2, the major averages are down more than 4% each.
Another potential market catalyst awaits Wednesday morning: March’s retail sales report. Economists polled by Dow Jones anticipate a 1.2% increase on the month, up from a 0.2% climb in February.
The data arrives at a time when consumers are feeling concerned about inflation and the economy. Investors will also watch out for industrial and manufacturing production data.
In Japan, the Nikkei 225 index sank 1% Wednesday, while in Hong Kong, the Hang Seng dropped 1.9%.
Oil prices gained 50 cents to $61.83 U.S. a barrel.
Gold prices jumped $75.00 to $3,315.40 U.S. an ounce.