The Pulse: Global Economic and Market News for Wednesday, April 16, 2025

Global Markets Slide as Fed Chair Powell Warns on Tariff Risks and Tech Stocks Plunge

On Wednesday, April 16, 2025, the global financial landscape was rocked by significant declines, a direct result of Federal Reserve Chair Jerome Powell's stark warning about the economic risks posed by President Donald Trump’s far-reaching tariffs. The severity of the situation was further underscored by a substantial drop in technology shares, particularly after Nvidia announced a multibillion-dollar charge due to new U.S. export restrictions on its AI chips to China.

U.S. Markets

U.S. stock indices tumbled, with the Dow Jones Industrial Average plunging 700 points (1.73%), the S&P 500 falling 2.24%, and the Nasdaq Composite dropping 3.07%—its worst day in months. Powell, speaking in Chicago, described the current tariff environment as “unprecedented in modern history” and warned that the economic repercussions would likely be “substantial,” leading to heightened inflation and diminished growth. He emphasized that the full impact remains “highly uncertain” as businesses and consumers adjust to the new trade landscape, a landscape that is constantly shifting due to the Trump administration’s unpredictable trade policies.

Source: CNN

Tech Sector and Nvidia’s Warning

The technology sector led the market downturn. Nvidia shares fell more than 6% after the company revealed it would take a $5.5 billion charge due to new U.S. government export restrictions on its H20 AI chips to China. This move is part of the escalating U.S.-China competition in artificial intelligence, a key battleground in the broader trade war. The competition intensified after Chinese startup DeepSeek made headlines with a cost-effective AI model rivaling ChatGPT. The export controls hit Nvidia and dragged down shares of other chipmakers, including AMD and Micron Technology. ASML reported weaker-than-expected orders, further weighing on the sector.

Sources: CNN, Economic Times, Investopedia, Bloomberg, BNN Bloomberg

Global Trade and Economic Outlook

The impact of the global trade war is increasingly evident. Fitch Ratings downgraded its 2025 global economic growth forecast by 0.4 percentage points and the U.S. outlook by 0.5 points, a significant shift that reflects the intensifying trade conflict. The World Trade Organization warned that if Trump proceeds with his proposed “reciprocal tariffs” after the 90-day suspension, global trade volume could contract by as much as 1.5% this year. China remains subject to a 125% reciprocal tariff on its U.S. exports and a new 20% general tariff. The WTO expects China to redirect goods to other markets, potentially increasing its exports to regions outside North America by up to 9%.

Source: CNN Business

Market Futures, Commodities, and Corporate Results

U.S. stock market futures pointed lower throughout the day, with technology concerns dominating investor sentiment. Gold prices surged past $3,300 per ounce, reflecting a flight to safe-haven assets, while oil prices dipped about 1%.

Sources: Economic Times, Bloomberg

Looking Ahead

Investors are bracing for continued volatility as the Trump administration’s tariff policies evolve and as key earnings and economic reports are released. The market remains on edge for further updates from policymakers and major corporations, particularly in the technology sector.

Disclosure

This article contains forward-looking statements and information based on current expectations as of April 16, 2025. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth herein. The economic and market analyses presented are based on various assumptions and may not prove to be accurate. Investors are cautioned not to place undue reliance on forward-looking statements.

The information provided is for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy, or investment product. The article references third-party information from various news sources; while efforts have been made to ensure accuracy, the reliability of these sources cannot be guaranteed.

Market data and stock prices mentioned are as of April 16, 2025, and are subject to change. Past performance is not indicative of future results. The performance of individual stocks or sectors mentioned in this article may not reflect the performance of the broader market.

Readers are advised to conduct their own research and consult with qualified financial professionals before making any investment decisions. This article does not constitute an offer to sell or the solicitation of an offer to buy any security.

Sources

• CNN: https://www.cnn.com/2025/04/16/investing/us-stock-market/index.html
• CNN Business: https://www.cnn.com/2025/04/16/business/tariffs-wto-global-trade-economy-intl/index.html
• Economic Times: https://economictimes.com/news/international/us/us-stock-market-today-16-april-is-stock-market-down-up-today-sp500-dow-future-nvidia/articleshow/120346464.cms
• Investopedia: https://www.investopedia.com/dow-jones-today-04162025-11716170
• Bloomberg: https://www.bloomberg.com/news/articles/2025-04-15/stock-market-today-dow-s-p-live-updates
• BNN Bloomberg: https://www.bnnbloomberg.ca/business/technology/2025/04/16/nvidia-drags-wall-street-down-as-united-airlines-says-its-impossible-to-predict-this-years-economy/
• CNBC: https://www.cnbc.com/2025/04/15/stock-market-today-live-updates.html
• Wall Street Journal: https://www.wsj.com/livecoverage/stock-market-trump-tariffs-trade-war-04-16-25

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