Tech Slammed, Tariffs Loom, Gold Surges to New Highs
April 16, 2025 – U.S. equity futures tumbled on Wednesday, rattled by mounting trade policy uncertainty and a regulatory bombshell from Nvidia that sent tech stocks reeling. The Nasdaq Composite futures dropped 2.2%, while the S&P 500 slipped 1.4% and Dow futures fell 0.8%, signaling a rough open for Wall Street.
Nvidia Hit Hard by China Export Restrictions
Nvidia revealed that the U.S. government has mandated licensing for exports of its H20 AI chips to China, a move that could cost the company $5.5 billion in lost revenue. The announcement triggered a sharp selloff in after-hours trading and reignited fears of deepening tech decoupling between the U.S. and China.
This comes on top of growing anxiety around the Trump administration’s evolving tariff strategy, including fresh levies being considered on pharmaceuticals, semiconductors, and critical minerals. Treasury Secretary Scott Bessett suggested clarity is coming—but not for China, intensifying investor concerns.
“Once we agree on tariffs, currency manipulation, and non-tariff barriers, we’ll move forward—but China’s not there yet.”
— Treasury Secretary Bessett
Gold Hits $3,275, UK Inflation Eases, BoE Cut Looms
Amid the volatility, gold surged to a fresh all-time high at $3,275/oz, as traders fled to safe-haven assets. Meanwhile, in the UK, March CPI slowed to 2.6%, cooler than expectations and the lowest in three months. Economists now widely expect the BoE to cut its Bank Rate from 4.5% to 4.25% on May 8, especially as U.S. trade shocks create ripple effects abroad.
- UK Services Inflation eased to 4.7%, down from 5.0%
- BoE peak inflation forecast: 3.7% in Q3, nearly double its 2% target
“We expect the BoE to maintain its gradual and careful approach to easing amid global volatility.”
— Martin Sartorius, CBI
Other Global Highlights
- Retail sales data in the U.S. is now in focus as Wall Street braces for signs of consumer softness.
- Japan tourism hits record pace, with 10M visitors by March, thanks to a weak yen—offering a bright spot amid broader global malaise.
Market Outlook
The global macro backdrop remains deeply uncertain, with the Trump administration’s tariff push destabilizing equity and commodity markets. As the Fed and BoE weigh rate cuts amid economic deceleration, tech remains the focal point of geopolitical tensions.
Next key data points:
- U.S. Retail Sales
- ISM Manufacturing & Services
- Earnings Season (Big Banks & Tech Majors)
