Tech Futures Slide, Gold Hits Record as U.S.–China Trade Tensions Escalate
Tech stocks took a hit Wednesday after the U.S. slapped tariffs of up to 245% on Chinese imports, sending shockwaves through global markets. Investors sought safety in gold, which soared past $3,300 an ounce to notch a new all-time high.
The latest escalation in the U.S.–China trade dispute has reignited volatility across financial markets. Risk appetite weakened sharply as traders fled tech and shifted into safe-haven assets.
Gold surged more than 2% on the day, marking a historic high, while the U.S. dollar weakened. Nasdaq futures dropped sharply, signaling a tough session ahead for U.S. equities.
The White House’s move, announced Tuesday, came in retaliation for Beijing’s own countermeasures—including export bans on key strategic materials like gallium, germanium, and rare earth elements, vital for advanced chipmaking. The tariffs also follow a new Executive Order aimed at investigating national security concerns tied to America’s dependence on foreign critical minerals.
Markets responded swiftly. The U.S. Dollar Index (DXY) slid below 100, a sign of eroding confidence in the greenback. The euro rose to $1.13, while the Japanese yen firmed to 142 per dollar.
Tech bore the brunt of the selloff. Nasdaq futures fell over 2%, with semiconductor stocks under particular pressure. Nvidia (NVDA) shares plunged 7% in pre-market trading after revealing that new U.S. export restrictions on AI chips bound for China would result in an estimated $5.5 billion revenue loss. The update sparked wider fears of profit declines across the chip sector, which relies heavily on Chinese customers.
Meanwhile, Bitcoin (BTC) slipped to $83,000, tracking losses in tech rather than behaving as a haven like gold—highlighting its continued sensitivity to broader risk sentiment tied to equity markets.
