U.S. stock index futures dropped Tuesday evening, led by steep losses in the tech sector after Nvidia warned of a major earnings impact from new U.S. export restrictions to China. S&P 500 Futures fell 0.8% to 5,384.00, Nasdaq 100 Futures declined 1.3% to 18,718.75, and Dow Jones Futures dropped 0.4% to 40,414.00.
Nvidia (NASDAQ:NVDA) tumbled 6% in after-hours trading after revealing it would take a $5.5 billion charge due to tighter U.S. government curbs. The company now needs a license to export its popular H20 AI chips to China, triggering a broad sell-off in semiconductor and AI stocks. AMD (NASDAQ:AMD) plunged nearly 7%, while Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO) lost 1.9% and 3.4%, respectively. TSMC (NYSE:TSM), a key Nvidia supplier, dropped 2%.
The broader tech sector also took a hit, with Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) shedding over 1% each. Investors remain cautious over potential supply chain disruptions from escalating U.S.-China trade tensions, which are seen as a threat to global tech firms.
Wall Street ended Tuesday slightly lower as uncertainty surrounding former President Donald Trump's tariff plans, especially on electronics and pharmaceuticals, kept markets jittery. The S&P 500 closed down 0.2% at 5,396.60, the Nasdaq dipped to 16,823.17, and the Dow fell 0.4% to 40,368.96.
Investors are now eyeing upcoming earnings from ASML (AS:ASML), Abbott Laboratories (NYSE:ABT), and Progressive Corp (NYSE:PGR), as well as key U.S. economic data, including retail sales and industrial production. Federal Reserve Chair Jerome Powell is also scheduled to speak, potentially offering further clues on monetary policy.
