Hello, investors!
Today, the U.S. stock market closed sharply lower as technology stocks tumbled and concerns over trade policy weighed on sentiment.
- Dow Jones Industrial Average: 39,669.39 (–1.7%)
- S&P 500: 5,275.70 (–2.2%)
- Nasdaq Composite: 16,307.16 (–3.1%)
- USD/KRW Exchange Rate: 1,417.00 KRW (–0.81%)
🌐 Key Issues
1. 📉 Tech Stocks Slide, Nvidia Drops on Export Restriction Impact
Nvidia plunged nearly 6% after announcing a potential $5.5 billion revenue hit due to new U.S. export restrictions to China. The news dragged down the broader tech sector.
(Source: Investopedia)
2. 🇺🇸 Fed Chair Powell Warns of Trade Policy Risks
Speaking at the Economic Club of Chicago, Fed Chair Jerome Powell cautioned that President Trump's tariff policies could hinder economic growth and accelerate inflation. His remarks intensified the day's selling pressure.
(Source: The Times)
3. 📊 Retail Sales & Industrial Output Reports
Retail sales for March rose 1.2% MoM, in line with expectations, while industrial production figures were also released. However, trade-related worries overshadowed the positive data.
(Source: Investopedia)
4. 🏦 ASML Reports Weak Orders, Cuts Guidance
Semiconductor equipment maker ASML reported a weaker-than-expected order book and lowered its Q2 sales forecast. This further stoked concerns over the semiconductor industry outlook.
(Source: Investopedia)
💡 Investment Takeaways
✅ Caution in Tech Sector: Trade restrictions are increasing volatility in tech and semiconductor stocks. A cautious approach is advised.
✅ Monitor Fed Signals: Statements by Fed officials, particularly Powell, have significant market impact. Watch closely for policy cues.
✅ Understand Policy-Economy Interplay: Even with strong economic data, uncertainty over trade policies can dampen sentiment. Adapt your strategy accordingly.
📝 Final Thoughts
Today’s sharp downturn in U.S. equities underscores how sensitive the market remains to policy developments and sector-specific risks. Amid this volatility, it’s essential to manage portfolios carefully and maintain a well-informed, disciplined investment approach.