US Sanctions Escalation Pressures Chipmakers and Shakes Global Markets

Global markets fell sharply during Wednesday’s trading session, driven by pressures on technology stocks,
particularly after the U.S. government’s decision to impose restrictions on Nvidia’s exports to China.
This comes amid growing concerns about weakening demand and escalating trade tensions.

Contents:

Japan
Europe
United States

Japan

The Nikkei 225 Index dropped by 1%, closing at 33,920 points, driven by a sharp decline in chipmaker stocks.
Advantest, a key supplier to Nvidia, fell by 6.55%, while Disco slumped nearly 8%.
The U.S. dollar also weakened against the yen, falling to 142.28,
while the yield on 10-year Japanese government bonds dropped to 1.288%.

Europe

The Stoxx Europe 600 index recorded losses exceeding 1%, with technology stocks falling by more than 3%.
The French CAC, British FTSE, and German DAX indices also declined amid gloomy forecasts for global demand.

Dutch chip equipment maker ASML saw a notable drop,
losing over 6% of its value after reporting earnings that fell short of expectations.
The company reported net bookings of €3.94 billion for the first quarter, compared to market expectations of €4.89 billion.

United States

In the U.S., Nasdaq 100 futures fell by 2.3%, and Nvidia’s stock dropped by 7% in pre-market trading.
Asian chipmakers such as SK Hynix and Taiwan Semiconductor also came under heavy pressure due to concerns over a slowdown in production expansion.

These developments coincide with Japanese negotiators heading to Washington to begin a new round of trade talks.
Japan is seeking to understand the implications of the Trump administration’s decision to ban the H20 chip from access to the Chinese market
— a move that has raised investor fears and negatively impacted growth prospects in the global semiconductor sector.

US Sanctions Escalation Pressures Chipmakers and Shakes Global Markets

US Sanctions Escalation Pressures Chipmakers

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