In the U.S. New York stock market, the three major stock indices are all declining. In particular, large semiconductor stocks such as NVIDIA are plummeting.
At 9:47 a.m. on the 16th (local time), the Dow Jones Industrial Average recorded a drop of 219.14 points (0.54%) from the previous transaction at 41,149.82.
The Standard and Poor's (S&P) 500 Index is down 59.72 points (1.11%), currently standing at 5,336.09. The technology-heavy Nasdaq Composite Index is experiencing a larger decline, down 319.04 points (1.9%) from the previous transaction at 16,504.13.
On this day, semiconductor giant NVIDIA is sharply declining even before the market opens. As of this time, NVIDIA is being traded at $106.06, down 5.48% from the previous day. In pre-market transactions, it recorded a drop of 7-8%.
The sharp drop in NVIDIA's stock price is interpreted as a result of the Trump administration's export restrictions on China. Earlier, on the 15th (local time), NVIDIA stated that it received notification from the U.S. government that permission was required to export H20 chips to China. It added that it was also informed that this regulation would be applied indefinitely.
The U.S. government has previously restricted exports of AI chips to China, and in response, NVIDIA has been manufacturing H20 chips tailored for China for export. However, as the U.S.-China trade war escalated, the Trump administration has now imposed restrictions on the export of H20.
Alongside NVIDIA, AMD, which is also regarded as a flagship corporation in the AI semiconductor field, is experiencing a significant drop in stock price, currently being traded at $89.78, down 5.78% from the previous transaction. Intel is down 3.53%, and Broadcom is down 3.36%.