The US Stock Exchange loses more than 1.5 trillion in just one day

Published at: 17/04/2025 10:58 PM

The collapse of technology stocks in the U.S. stock market, driven by trade restrictions and tariff fears, deepened on Wednesday. The market is feeling pressure as volatility increases, amid concerns about the economic impact of tariffs.

The S&P 500 benchmark fell more than 2.2%, while the Dow Jones industrial average lost roughly 700 points, or about 1.7%. The Nasdaq plummeted more than 3%, mainly affecting the technology sector, details The Wall Street Journal.

The American chip giant Nvidia seems to be particularly affected. Its shares fell about 7% after the company revealed that the U.S. government had imposed new restrictions on its chip exports to China. Last day, the company warned that it would stop earning $5.5 billion per quarter.

Several specialized media estimate that this situation would have caused Wall Street to lose more than 1.5 trillion dollars this Wednesday. In particular, the wave of sales in the market intensified in the last few hours of trading after Jerome Powell's speech this Wednesday.

The head of the US Federal Reserve said that President Donald Trump's tariffs appear to be higher than expected, which in turn could slow down the economy and boost inflation in the short term. “All of this is very uncertain. We are thinking now, before the tariffs take effect, about how they could affect the economy,” he said.

The Reuters agency reported last week that the shares of the so-called 'magnificent seven' technology (Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia and Tesla) had accumulated more than 1.5 trillion dollars in market value on April 9, after Trump stopped tariffs for 90 days, and thus alleviated the pressure that had fallen on those companies in recent sessions. However, that doesn't erase the nearly two trillion dollars in value that they collectively lost at the beginning of the month, following the introduction of reciprocal tariffs.

Mazo News Team