On April 16, US stocks opened lower on Wednesday. The Dow Jones Industrial Average fell by 0.35% to 40225.82 points, the S&P 500 index fell by 1.01% to 5342.16 points, and the Nasdaq index fell by 1.89% to 16499.69 points.
In particular, technology stocks generally declined, with all seven major US tech giants opening lower. NVIDIA plummeted by 6.9%, Microsoft fell by 1.4%, Apple fell by 1.8%, Amazon fell by 1.7%, Google fell by 2.1%, Tesla fell by 2.5%, and Meta fell by 2.5%.
In addition to NVIDIA, the semiconductor sector also showed weakness. Advanced Micro Devices (AMD) fell by 7.9%, Applied Materials fell by 5.3%, ASML fell by 5.3%, and TSMC fell by 5.1%.
This week, the US stock earnings season continues, with well-known companies such as Goldman Sachs, Johnson & Johnson, Bank of America, Citigroup, Blackstone, ASML, TSMC, Netflix, etc., set to release their results in succession.
US stock price data at the time of publication from iFinD Tonghuashun.
The adjustment of Trump's tariffs continues to cause market volatility.
On April 15 Eastern Time, the White House website released a fact sheet about the Section 232 investigation into critical minerals and derivatives, mentioning that due to China's retaliatory measures against US "reciprocal tariffs," Chinese goods exported to the United States now face tariffs as high as 245%.
Since the Trump administration first announced its "reciprocal" tariffs on April 2, the main US stock indices have fallen by more than 4%. This adjustment is based on the previous announcement by the US government to increase tariffs from 145% to 245%, only five days after the last adjustment.
The World Trade Organization (WTO) warned that under the uncertainty of Trump's tariffs, the global trade outlook has "deteriorated sharply," with a particularly significant decline in commodity trade in North America.
The WTO downgraded its 2025 trade growth forecast and warned of further economic recession. The World Trade Organization cut its global merchandise trade forecast from robust growth to decline on Wednesday, stating that further US tariff hikes and their spillover effects could lead to the most severe decline in global merchandise trade since the peak of the pandemic.
In response to the US imposing a 245% tariff on China, the Ministry of Foreign Affairs stated that China has repeatedly clarified its solemn position on the issue of tariffs. This tariff war was initiated by the US side, and China's necessary countermeasures are to safeguard its own legitimate rights and interests and international fairness and justice, which is entirely reasonable and legal. There will be no winner in a tariff war or trade war, and China does not want to fight but is certainly not afraid to do so.
NVIDIA's H20 imports hindered, semiconductor sector declines.
NVIDIA said in regulatory filings on Tuesday that the US government had notified the company on Monday that future exports of H20 chips to certain countries would require "indefinite" license applications. The government stated that the new rule aims to address concerns that chips "may be used or diverted for use in Chinese supercomputers."
NVIDIA warned that it will record approximately $5.5 billion in charges in the first quarter of this fiscal year, related to "inventory, purchase commitments, and related reserves" associated with the H20 series chips. NVIDIA has previously stated that further tightening export controls will only strengthen the resolve of other countries to reduce dependence on American technology and will weaken the competitiveness of American companies.
Following NVIDIA's related news, the semiconductor sector declined.
In addition to NVIDIA, AMD announced on April 16 that it had completed its preliminary assessment of the US semiconductor export control regulations. These regulations apply to AMD's MI308 products, and the company expects to apply for licenses, but there is no guarantee that they will be granted. AMD estimates that export control regulations could result in inventory, procurement, and related reserve costs of up to $800 million.
ASML also released its financial report, with first-quarter revenue of €7.74 billion, compared to €5.29 billion in the same period last year; net profit of €2.355 billion, compared to €1.224 billion in the same period last year. First-quarter orders fell short of expectations, and the company stated that tariffs have increased uncertainty in prospects for the next two years.
Before the tariff implementation, cars were snatched up by American consumers.
US March retail sales rose by 1.4% month-over-month, exceeding expectations of a 1.3% increase and the previous reading of 0.2%; core retail sales rose by 0.5%, exceeding expectations of a 0.3% increase, with the previous figure revised from 0.3% to 0.7%, marking the largest increase in two years.
Trump stated locally on April 14 that he is considering partially exempting the 25% import tariff on cars and auto parts to give car manufacturers more time to adjust their supply chains. Trump noted that these car companies indeed need some time to produce domestically.
Data from the Center for Automotive Research shows that currently, imported vehicles account for 48% of vehicles sold nationwide, and domestically produced vehicles contain an average of 30% imported components, enough to indicate that the actual impact of the US imposing additional tariffs on the automotive industry may far exceed expectations.
Following these related messages, American consumers began hoarding cars and related products to purchase them before the punitive car tariffs were implemented.
Due to the surge in car purchases, US retail sales significantly increased in March. Unadjusted retail sales rose by 1.4%, the largest increase in over two years. Excluding automobiles, retail sales increased by 0.5%.
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Source: https://www.toutiao.com/article/7493928736287359488/
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