Global markets are again under pressure after an escalation in US – China Merchant Tensions, with investors fleeing to the garden and tech shares that are beating.
Gold rose over 2% Wednesday to top $ 3,300 per Ounce and set a new record high. The dollar further weakened and Nasdaq Futures pointed on a hard day in front of Wall Street.
On Tuesday, the White House announced tariffs of up to 245% on Chinese imports in response to China’s retaliatory measures and ban on exports of important strategic materials, including rare groundings, gallium and gallium and germanium used for the production of high -speed computer chips. The move follows a executive order launching a study of national security risks tied to US dependence on foreign critical minerals.
The markets responded quickly. The Dollar Index (DXY) fell back below 100, signaling the investor’s confidence in the US currency. Meanwhile, the euro strengthened $ 1.13 and yen to 142 per Dollar.
Shares fought. Nasdaq futures fell more than 2%, with tech shares that are particularly severely affected. NVIDIA (NVDA) shares fell 7% prior to the company revealing that new US export controls on AI chips to China would cost the $ 5.5 billion in lost revenue. The message raised concerns about wider earnings hits over the semiconductor industry, which is very dependent on Chinese demand.
Bitcoin (BTC) dropped slightly to $ 83,000 after the news, reflecting its stronger correlation with US tech shares rather than acting as a safe-port-active as gold.
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