Investing.com-- U.S. stock index futures held steady Wednesday evening following Nvidia-led sharp declines on Wall Street, as Federal Reserve Chair Jerome Powell highlighted risks around tariffs and said the Fed was not inclined to cut interest rates anytime soon.
S&P 500 Futures were largely muted at 5,303.50 points, while Nasdaq 100 Futures were unchanged at 18,393.0 points by 20:05 ET (00:05 GMT). Dow Jones Futures edged up 0.1% to 39,876.0 points.
Wall St drops as Nvidia flags $5.5 bln hit from China export curbs
U.S. stocks saw sharp losses in Wednesday’s regular trading session, with NVIDIA Corporation’s (NASDAQ: NVDA ) stock dropping nearly 7% after the company warned of a $5.5 billion charge in the first-quarter, related to new U.S. export restrictions on its H20 AI to China and other countries.
The H20, designed specifically for the Chinese market, now requires an export license under U.S. regulations—a requirement expected to remain indefinitely, the U.S. government told Nvidia.
The Dow Jones Industrial Average closed 1.7% lower, and the S&P 500 index dropped 2.2%, while the NASDAQ Composite slipped 3.1%.
Other major chipmakers and tech stocks were also rattled by Nvidia’s announcement.
Advanced Micro Devices (AMD) shares (NASDAQ: AMD ) declined over 7%, Intel Corporation (NASDAQ: INTC ) fell 3%, and Broadcom Inc (NASDAQ: AVGO ) lost 2.4%.
Wall Street analysts cautioned that the announcement might fuel further volatility amid the broader U.S.-China tariff standoff.
Shares of Apple (NASDAQ: AAPL ), Microsoft (NASDAQ: MSFT ), Amazon (NASDAQ: AMZN ), and Meta Platforms Inc (NASDAQ: META ), all closed modestly lower.
Tesla Inc (NASDAQ: TSLA ) shares slumped nearly 5%.
Powell says rate cuts not imminent; investors assess retail sales data
Fed Chair Powell on Wednesday said that the Fed was not inclined to cut interest rates in the near future, citing the inflationary pressures and economic uncertainties introduced by the new tariffs.
"Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem," Powell said in prepared remarks at the Economic Club of Chicago.
The Fed’s cautious stance comes amid concerns that the tariffs could lead to higher consumer prices and slower economic growth. Powell highlighted the need for a wait-and-see approach.
Meanwhile, data on Wednesday showed U.S. retail sales jumping by 1.4% in March, following a revised 0.2% increase in February, as consumers ramped up vehicle purchases in anticipation of upcoming tariffs.
“Retail sales jumped as consumers brought forward purchases of ’big ticket’ items to get ahead of feared tariffs. But with confidence plummeting on price, job and wealth concerns, the consumer will be less of a growth engine later in the year,” ING analysts said in a note.