Wall Street opens lower as Nvidia dips on tariff blow, tech stocks under pressure 

US markets opened sharply in the red on Wednesday after chipmaker Nvidia disclosed a $5.5 billion charge linked to fresh U.S. government restrictions on exporting its H20 AI chips to China and other countries. The announcement triggered a tech-led selloff, pulling down the Nasdaq Composite by 1.8%, while the S&P 500 fell 0.9% and the Dow Jones Industrial Average dropped 180 points, or 0.4%.

At the open, Nvidia shares plunged nearly 6%, dragging other chip and tech stocks with them. The selloff came after the company on Tuesday revealed in a regulatory filing that the US now requires a license to ship its H20 graphics processing units — a chip designed specifically to comply with earlier export curbs—to China. The H20 had generated an estimated $12–15 billion in revenue in 2024.

Advanced Micro Devices (AMD) also flagged a potential $800 million impact due to similar restrictions on its MI308 processors, according to a filing made Wednesday. Shares of AMD, along with Micron, ASML, and broader tech majors like Meta, Alphabet, Amazon, Apple, Microsoft, and Tesla, were all trading lower. 

The disclosures from Nvidia and AMD mark the first major corporate fallout from former President Donald Trump’s renewed tariff campaign, which includes sweeping export restrictions and potential levies on imported semiconductors. While some electronics have been temporarily exempted, the administration has warned of additional tariffs in the pipeline.

The ripple effects extended beyond semiconductors. The Nasdaq Composite, heavily weighted toward tech stocks, dropped nearly 2%, with Meta Platforms, Alphabet, and Tesla each losing around 2%, while Apple, Amazon, and Microsoft were down about 1% each.

The Bank of Canada added to concerns, warning that if US tariffs escalate into a global trade war, Canada could face a spike in inflation and enter a deep recession. In light of the mounting uncertainty, the central bank skipped its usual quarterly economic projections, Reuters reported.

Global markets remain jittery after Trump’s announcement of tariffs on nearly all major U.S. trading partners. While tariffs on smartphones and PCs were recently suspended for 90 days, duties on Chinese imports remain in force, escalating tensions with Beijing.