The New York Stock Exchange fell sharply during Wednesday’s session after Jerome Powell, president of the American Central Bank (Fed), presented gloomy perspectives for the country’s economy.
Around 6:20 PM GMT, the Nasdaq index, where the technological sector is concentrated, dives 3.45%, the S&P 500 enlarged index falls 2.29%and Dow Jones 1.50%.
An upcoming “complicated” situation
Already in the red in the opening, the American Plaza was sealed by de Jerome Powell, according to whom the customs duties desired by US President Donald Trump place to the Fed of a “complicated situation in which our two objectives are in tension.”
The Fed has a double mandate, without priority, between the maintenance of inflation close to its long -term objective of a 2%increase, in the annual rate, while guaranteeing the economic conditions that lead to full employment.
During an event of Chicago Economy Club, Powell judged that “customs duties will certainly lead to at least one temporary increase in inflation” with the possibility that “inflationary effects are also persistent.”
Nvidia and AMD in red
The US president has greatly increased customs tasks that were applied to the products that enter the United States, now taxed at least 10%, with up to 145% more of many Chinese products, beyond the pre -existing customs tasks before Donald Trump’s return to the White House.
The semiconductor sector, already undermined Wednesday by the commercial war launched by Trump, also sank the most beautiful after Mr. Powell’s speech.
Nvidia announced Tuesday night that its first quarter exceeded the results (from February to April) should include up to around 5.5 billion dollars in exceptional positions.
In a document for the dry, he said that the United States government informed him last week that he should now obtain a license to export certain artificial intelligence (AI) chips to China and other countries.
Around 6:20 PM GMT, NVIDIA Sunk 8.93%, AMD 8.17%, Taiwan Semiconductor Manufacturing (TSMC) lost 4.48%and Broadcom 4.61%.
Source: BFM TV
