U.S. major indices traded lower at midday Wednesday, pressured by sharp declines in tech and semiconductor stocks after Washington tightened chip export restrictions to China.
The U.S. government has barred Nvidia Corp. (NASDAQ:NVDA) from selling its H20 chips to China — a move that could wipe out an estimated $5.5 billion from the company’s projected quarterly revenue. Nvidia shares slid nearly 7%.
Other chipmakers also felt the heat. Advanced Micro Devices Inc. (NASDAQ:AMD) dropped 6% as its MI308 chips fall under the new licensing requirements.
The iShares Semiconductor ETF (NASDAQ:SOXX) sank 3.4%, extending the sector’s losses. Adding to the drag, Dutch chip equipment giant ASML Holding N.V. (NASDAQ:ASML) missed quarterly revenue estimates, sending its shares down 5%.
On the macro front, March retail sales surprised to the …