Wall Street Ends Lower as Fed Minutes and Chip Stock Slump Weigh on Sentiment
U.S. stock indices closed in the red on Wednesday as investors digested new signals from the Federal Reserve's latest policy meeting, while chip-related stocks took a hit late in the trading session.
Nvidia Beats Earnings Forecasts, But Guidance Raises Eyebrows
Shares of Nvidia (NVDA.O) jumped 5% in after-hours trading thanks to better-than-expected quarterly revenue. However, enthusiasm was tempered by the company's revenue outlook for the second quarter, which came in below Wall Street forecasts. During the regular session, Nvidia's stock slipped 0.5%.
Chip Design Firms Slide Amid Reports of U.S. Crackdown on China Deals
Cadence Design Systems (CDNS.O) and Synopsys (SNPS.O) both fell sharply after a Financial Times report revealed that the Trump administration had directed U.S. semiconductor design software firms to halt sales to Chinese companies. The story, citing unnamed sources, triggered a 10.7% plunge in Cadence shares.
Fed Signals Tough Choices Ahead
Minutes from the Federal Reserve's May 6–7 meeting showed policymakers acknowledging looming trade-offs. The central bank faces a challenging path ahead, as it may need to juggle rising inflation and the threat of increasing unemployment.
Markets Rose on Tuesday as Trump Softened Tariff Threat
A day earlier, markets had staged a strong rally after Donald Trump unexpectedly dialed back his threat to impose 50% tariffs on European imports. That moment of relief, however, proved short-lived.
U.S. Markets Slide Again as Caution Dominates Wall Street
U.S. stocks ended Wednesday's session in the red, with all three major indices losing ground amid ongoing market uncertainty and geopolitical tensions.
Market Summary:
- Dow Jones Industrial Average fell by 244.95 points (–0.58%) to close at 42,098.70;
- S&P 500 declined 32.99 points (–0.56%), finishing at 5,888.55;
- Nasdaq Composite lost 98.23 points (–0.51%), ending the day at 19,100.94.
Chip Stocks Rebound in After-Hours Trading
After the regular session ended, chipmakers posted gains. Broadcom (AVGO.O) rose by 3.2%, while Advanced Micro Devices (AMD.O) climbed 1.5%, reflecting continued investor interest in the semiconductor sector.
S&P 500 Still Struggling to Recover
Year-to-date, the S&P 500 is up by just 0.1%, still trailing behind its all-time closing high from February 19. Since then, the index has dropped 18.9%, weighed down by erratic tariff policy statements from Donald Trump that shook markets throughout much of his second term.
Analysts Expect a Flat Finish
A recent survey of strategists and analysts suggests that the S&P 500 is likely to end the year near current levels. Investors remain cautious amid persistent economic headwinds and global trade concerns.
Dick's Sporting Goods Beats Estimates
Shares of Dick's Sporting Goods (DKS.N) rose 1.7% after the retailer reported first-quarter earnings that surpassed Wall Street expectations, highlighting resilience in consumer spending on athletic gear.
European Stocks Rise as U.S. Court Blocks Trump's Tariff Move
European markets opened higher on Thursday, buoyed by a U.S. trade court decision that halted former President Donald Trump's proposed import tariffs. The court ruled that Trump had overstepped his authority by imposing sweeping duties without Congressional approval.
The pan-European STOXX 600 index climbed 0.4% by 07:15 GMT, while regional indices were broadly in positive territory. Germany's DAX 40 gained 0.5%, hovering just below its all-time high.
Wall Street Futures Jump on Trade Clarity
U.S. stock futures surged over 1.5% in premarket trading as the court ruling brought temporary relief from lingering trade tensions.
AI-Driven Tech Stocks Lead the Rally
European firms with AI exposure posted notable gains. Shares of ASML and Schneider Electric both rose by around 3%, while the region's tech sector index (.SX8P) led the charge with a 1.7% increase.
Automakers Accelerate on Reduced Tariff Risk
Carmakers — often vulnerable to protectionist measures — saw early gains. Stellantis shares advanced 2.5%, Porsche gained 1%, and Volkswagen added 1.2%, driven by optimism around a more open trade environment.
Luxury Stocks Shine Bright
Luxury brands also saw investor enthusiasm. Kering, Christian Dior, and Burberry stocks rose between 3% and 3.6%, as the high-end consumer segment continued to signal strength.
Asian Markets Surge as U.S. Court Blocks Trump's "Liberation Day" Tariffs
Asian equities and Wall Street futures soared on Thursday following a surprising U.S. federal court ruling that halted President Donald Trump's proposed "Liberation Day" tariffs. The decision boosted risk appetite and strengthened the dollar against safe-haven currencies.
A relatively obscure U.S. Court of International Trade, based in Manhattan, ruled that Trump had exceeded his executive authority by imposing blanket import tariffs on April 2, targeting America's trading partners.
Japan, South Korea Lead the Rally
The market welcomed the legal barrier to tariff escalation. Japan's Nikkei (.N225) surged 1.7%, while South Korea's Kospi (.KS11) climbed 1.8%, reaching a nine-month high.
The MSCI Asia-Pacific index ex-Japan rose 0.5%, and China's blue-chip CSI300 advanced 0.6%, supported by strong gains in major listed firms.
Gold Softens, Oil Keeps Climbing
In commodities, gold—a traditional haven—fell as investors shifted back into equities. The precious metal dipped 0.5% to $3,271 per ounce.
Oil prices, meanwhile, extended their rally. The drivers: OPEC+ maintained its current production policy, and the U.S. banned Chevron from exporting Venezuelan crude, fueling supply concerns.
- Brent crude gained 96 cents, closing at $65.87 per barrel;
U.S. WTI crude rose $1, reaching $62.84 per barrel.
