Tech stocks sold off amid Nvidia's tariff-related woes
Stocks succumbed to Fed rhetoric today, with the Dow retreating back below 40,000 and the Nasdaq shedding over 3%. Speaking at the Economic Club of Chicago, Fed Chair Jerome Powell expressed concerns over President Trump's tariff policy, noting the levies may lead to higher inflation and “move us further away from our goals.” Powell also said the central bank is positioned to wait for "greater clarity" before adjusting is policies, offering little insight into the future of interest rates. All three major indexes dug further into the red after his comments.
Wall Street also grappled with a tech selloff today on the heels of Nvidia's (NVDA) $5.5 billion tariff-related charges. Elsewhere, the New York Times reported the Trump administration is now looking to bring DeepSeek -- a Chinese artificial intelligence (AI) startup that uses Nvidia chips -- under scrutiny.
Continue reading for more on today's market, including:
- Pre-earnings look at UnitedHealthcare stock.
- 2 gold stocks enjoying bullion's record run.
- Plus, chipmaker's downbeat outlook; United Airlines earnings; and Lyft's European expansion.
5 Things to Know Today
- President Trump signed an executive order means to lower prescription drug prices for many Americans, including people on Medicare. (Wall Street Journal)
- OpenAI is in talks to acquire Windsurf, an artificial intelligence (AI) tool for coding assistance, for roughly $3 billion. (CNBC)
- Behind this chipmaker's lackluster sales forecast.
- Options traders targeted United Airlines stock after earnings.
- Ridesharing giant Lyft announced its first European acquisition.
Gold Nabs New Record Amid Stockpiling
Oil prices finished higher on Wednesday, after the U.S. issued new sanctions targeting Chinese importers of Iranian oil. This comes as President Trump pushes to eliminate oil exports from Iran. May-dated West Texas Intermediate (WTI) crude added $1.18, or 1.8%, to finish at $65.85 per barrel.
Gold prices settled at a new record high, and also marked their best day since April 2020 as traders and central banks across the globe stockpile the safe-haven asset amid tariff uncertainty. June-dated gold rose 3.7% to settle at $3,326.60 an ounce.