(New York) The New York Stock Exchange started falling on Wednesday, disturbed by the desire of the American administration to limit, according to the press, exports to China of chips dedicated to artificial intelligence (AI).
As of 10 a.m. EST, the tech-heavy NASDAQ was down 0.17%, notably clouded by microprocessor specialist Nvidia (-2.21%). The Dow Jones Index slid 0.38% and the S
“Trade around artificial intelligence suffered a major setback after the Wall Street Journal reported that the Biden administration may unveil new restrictions on exports to China of chips used in artificial intelligence,” said Edward Moya, analyst at Oanda.
Nvidia, a specialist in super-powerful microprocessors researched by AI, “makes 20% of its revenue from China,” he added, explaining the stock’s plunge.
Its competitor AMD also lost 2.22%.
The New York market had rebounded strongly on Tuesday, signing its first positive session in more than a week, driven by solid indicators on the American economy.
The Dow Jones Index advanced 0.63% to 33,926.74 points, the NASDAQ climbed 1.65% to 13,555.67 points and the S
Apple, stable on Wednesday (0.08%), was again approaching the threshold of 3000 billion dollars in capitalization, exceeded in January 2022. Concluding Tuesday at 188.06 dollars, up 1.5%, the action must increase further to reach 190.73 dollars and the 3000 billion mark.
Investors were also adopting a cautious profile as they awaited comments from Federal Reserve (Fed) Chairman Jerome Powell at the Sintra central bankers’ forum in Portugal, where he is taking part in a conversation with Christine Lagarde, President of the European Central Bank. (ECB), and Andrew Bailey, Governor of the Bank of England.
“The element of surprise” about Mr. Powell’s statements “is negligible since he just presented his semi-annual hearing before Congress last week,” said Patrick O’Hare of Briefing.com.
“However, it is likely that Mr. Powell and his colleagues will insist that inflation is still too high and that there is still work to be done,” added the analyst.
The Fed and the banking sector will also be in the sights of investors, as the American banking regulator is due to announce the results of the stress tests of the major financial institutions in the afternoon.
The big banks were down, from Bank of America (-0.83%) to Citigroup (-0.78%) to Wells Fargo (-0.68%).
Elsewhere on the coast, the airline Delta continued to grow (1%) after the surge the day before, driven by travel demand, as well as United Airlines (1.11%).
Shares in space tourism firm Virgin Galatic benefited (4.26%) from the prospect of a manned launch on Thursday, its first commercial flight sponsored by the Italian Air Force.
Meal delivery company DoorDash climbed 2.94% after reforming its delivery system.
In the bond market, yields on ten-year Treasury bills eased slightly to 3.74% from 3.76% at the close on Tuesday.