U.S. stock futures fell early Wednesday, primarily due to a 6.2% drop in Nvidia’s (NVDA) shares in the after-hours trading session. The decline came after NVDA disclosed a $5.5 billion charge due to new export limits on its H20 chips. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 2.09%, 0.74%, and 1.36%, respectively, at 3:39 a.m. EST, April 16.
This weak sentiment follows a relatively subdued trading session on Tuesday, where all three major indices closed in the red after a two-day winning streak. The Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) were down nearly 0.4%, 0.2%, and 0.1%.
Investors remain focused on the escalating trade tensions between the U.S. and China. Further, the Commerce Department’s investigation into semiconductor and pharmaceutical imports raises the chances of additional tariffs.
In the latest update, President Trump said that Beijing needs to enter a trade deal with the U.S., as China’s economy relies heavily on American consumers. Also, Beijing appointed a new chief trade negotiator, who previously served as an ambassador to the World Trade Organization, signaling a shift in its approach to trade discussions.
Looking ahead, the March Retail Sales report is slated for release today. Economists anticipate a 1.2% month-over-month increase, a significant rise from February’s 0.2%. This data will be closely watched for insights into consumer spending amid inflation concerns and economic uncertainty. Also, investors are awaiting Industrial and Manufacturing production figures.
On the earnings front, several companies are scheduled to report today, such as Travelers (TRV), U.S. Bancorp (USB), Abbott Labs (ABT), ASML (ASML), and Citizens Financial (CFG).
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.302%. Simultaneously, WTI crude oil futures are trending lower, hovering near $60.78 per barrel as of the last check.
Elsewhere, European indices opened lower on Wednesday, as uncertainty about U.S. trade tariffs continues to weigh on market sentiment.
Asia-Pacific Markets Ended Lower on Wednesday
Most of the Asia-Pacific indices were in the red today as investor sentiment was dampened by fears of higher import duties and geopolitical tensions. Adding to the uncertainty, President Trump initiated a probe into potential tariffs on critical mineral imports, many of which come from China.
At the time of writing, Hong Kong’s Hang Seng Index was down 1.43%. Further, Japan’s Nikkei and Topix indices closed lower by 1.01% and 0.61%, respectively. Also, China’s Shenzhen Component Index declined 0.85%, while the Shanghai Composite Index was up 0.26%.
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