Dow Jones Futures Decline Amid Growing Concerns In Tech Sector: Nvidia Stock In Focus Amid Tariff Cloud

U.S. stocks are set for a cautious opening on Wednesday as concerns mount on the prospects of technology companies due to the Trump administration’s tariff policies.

President Trump escalated the tariff war against China by raising levies to a staggering 245%. While this prompted China to replace its top trade representative, several major Asian indices declined in Wednesday’s trading session.

At the time of writing, the Dow Jones futures were down 0.20%, while the S&P 500 declined 0.80%. With technology stocks expected to take a worse beating on Wednesday, the Nasdaq 100 futures fell the most, with a decline of 1.5%. Futures of the Russell 2000 index fell 0.30%.

Meanwhile, the SPDR S&P 500 ETF Trust (SPY) was down 0.7% on Wednesday morning, while Invesco QQQ Trust (QQQ) declined 1.5%.

Bitcoin (BTC) fell 2% in the past 24 hours.

Asian markets ended Tuesday’s trading session on a largely negative note. The Hang Seng and TWSE Capitalization Weighted Stock indices declined the most, at 2%, followed by the KOSPI, which fell 1.2%.

The Nikkei 225 index fell 1%, while the Shanghai Composite ended 0.30% higher.

US Stocks’ Tuesday Performance

A rise in volatility led to U.S. stocks ending in the red on Tuesday after experiencing a sideways movement.

While the Dow Jones fell 0.40% on Tuesday, the S&P 500 declined 0.20%.

The tech-heavy Nasdaq 100 index ended the trading session up by 0.20%.

However, Nvidia Corp. (NVDA) warned of a $5.5 billion charge in the first quarter due to H20 chip export restrictions to China and other countries subject to embargoes.

Nvidia’s stock was down more than 6% in the pre-market trading session on Wednesday.

WisdomTree analyst Jeremy Siegel warned that the technology sector remains “highly vulnerable” to the tariff war between the U.S. and China.

“The Magnificent 7, with PEs in the 30s, have taken a hit—and for good reason. Disrupting U.S.-China tech integration jeopardizes both production chains and long-term innovation leadership,” he said.

On the other hand, Citigroup Inc. (C) and Bank of America Corp. (BAC) posted strong first-quarter results, beating Wall Street expectations.

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Also See: Hong Kong Suspends US-Bound Parcel Services In Response to Trump's 'Unreasonable' Tariffs

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