Chipmakers Lead Tech Stock Rout As Trump Curbs Exports To China

The Trump administration put new restrictions on semiconductor exports to China, impacting Nvidia’s H20 chip and AMD’s MI308 products unless the companies secure a license — the latest escalation of Washington’s tech battle with Beijing. Meanwhile, ASML reported orders that missed analyst estimates and said it doesn’t know how to quantify the impact of recent tariff announcements.

“Considering how important large-cap tech has been to the broader equity rally these last few years, it goes without saying that these headlines are worrisome,” said Dan Greenhaus, chief strategist at Solus Alternative Asset Management.

The World Trade Organization slashed its forecast for merchandise trade this year as soaring US tariffs and broader uncertainty hammer international commerce. The entity expects the volume of world merchandise trade to decline by 0.2% in 2025, the contraction could be even worse if the US pushes ahead with higher levels of so-called reciprocal tariffs.

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The developments in the tech sector overshadowed signs that China is willing to negotiate on trade after the nation said it was open to discussions with the White House if its officials rein in disparaging remarks.

“Sentiment toward US risk assets is showing all the signs of long-term scarring, and if no significant progress is made on trade talks with major US trade partners in the next 90 days, we could be in for a rough summer period for equity markets,” said IUR Capital’s Gareth Ryan.

Elsewhere on Wednesday, US retail sales rose substantially in March on a jump in car purchases and other goods such as electronics, suggesting consumers were scrambling to get ahead of tariffs.

US stocks had entered into a period of relative calm in recent days following a volatile stretch which saw the S&P 500 log six consecutive sessions with a peak move of 4% in either direction, the longest such run since the March 2020 pandemic downturn.

Growing optimism from corporate executives stands in contrast to the broader risk-off mood. Corporate insiders scooped up shares of their own companies at the fastest pace in 16 months as the S&P 500 sank in March, and they kept buying at an elevated clip as the rout accelerated this month in the wake of Trump’s global tariff rollout.

In individual movers, Hertz Global Holdings Inc. shares soared after Pershing Square Capital Management revealed a large stake in the beleaguered car rental company. JB Hunt Transport Services Inc. shares dropped as analysts point to continuing concerns about the impact of tariffs and the broader economy on the trucker.