US Markets Close Lower Amid Chipmaker Struggles

Major US stock markets faced a downturn on Wednesday, with chipmakers at the forefront of the losses. The decline was fueled by investor reactions to potential US crackdowns on Chinese AI firm DeepSeek and its supplier Nvidia, alongside existing export restrictions impacting the sector.

Impact of Export Curbs and Fed Comments

Nvidia anticipates a significant $5.5 billion sales loss due to current export curbs, while AMD warns of up to $800 million in charges from new US regulations. The situation worsened following Fed Chair Jerome Powell's remarks on how President Donald Trump's tariffs could exacerbate inflation and challenge the Fed's objectives.

Market Performance Highlights

By the close at 4:00 pm ET, the Dow Jones Industrial Average had dropped 1.73%, losing 699 points. The Nasdaq 100 and S&P 500 also saw declines of 3.04% and 2.24%, respectively. Meanwhile, the euro gained 0.97% against the dollar, trading at $1.13905.

Stay tuned for further updates on this developing story.