Key Points
- S&P 500 closes at 5,317.93, down 0.55%, after hitting a low of 5,308.87.
- Nvidia slumps over 6% premarket after disclosing $5.5 billion in lost sales tied to new chip restrictions to China.
- Focus turns to U.S. retail sales, industrial production, and Fed Chair Powell’s speech.
U.S. equities retreated on Wednesday as rising trade tensions and renewed tech sector volatility weighed heavily on sentiment. The S&P 500 slipped 0.55%, settling at 5,317.93, while Nasdaq futures pointed to sharper losses after Nvidia revealed major revenue headwinds tied to fresh export restrictions on AI chip sales to China.
The pressure came largely from Nvidia, which tumbled over 6% in premarket hours after announcing that U.S. regulators had blocked sales of certain AI chips to China without a license, in a move expected to reduce quarterly revenue by $5.5 billion. The shock guidance sent ripples across semiconductor stocks and raised concerns over broader export restrictions targeting high-tech industries.
As the S&P 500 increasingly tracks heavyweight tech names, news like this poses disproportionate downside risk, particularly when sector earnings are under scrutiny and valuation premiums remain elevated.
Macro Catalysts Ahead
Beyond Nvidia, attention turns to macro fundamentals. Retail sales and industrial production figures will offer insights into the state of the consumer and factory activity, both of which are crucial for confirming or dispelling recession signals. Fed Chair Jerome Powell is also set to speak at the Economic Club of Chicago, and markets will be closely watching for any forward guidance on the rate path amid sticky inflation and global shocks.
Despite the calm in bond markets, equity volatility may persist if Powell strikes a hawkish tone or economic data disappoints.
Technical Analysis
The SP500 has entered a clear short-term downtrend, with price consistently printing lower highs and lower lows since the April 16 open. The session high at 5363.38 failed to break previous resistance, and price has since slipped to 5308.87, forming a broad descending channel.
All key moving averages (5/10/30) are now angled downward, with the 5MA remaining firmly below the 30MA—a classic bearish alignment. The MACD histogram shows persistent negative momentum, and although there was a brief attempt at a bullish crossover, the follow-through was weak, keeping selling pressure in place.
Picture: SP500 rolls over as selling pressure grinds through short-term support, as seen on the VT Markets app
The current structure shows 5308–5310 as immediate support. If this level fails, we could see a retest of 5275–5285, a region of prior consolidation. On the upside, any bounce would need to break 5350 convincingly to reverse sentiment.
For now, tech-sector fragility and geopolitical overhang suggest markets may tread cautiously in the sessions ahead. Watch for broader risk-off flows if chip sector losses deepen or Powell surprises with a hawkish stance.
