May 2nd, 2025
Most shares around the world went down on Wednesday. This was because the US made it harder to sell powerful computer chips that are used for AI. Companies like Nvidia had problems because of these new rules.
The S&P 500 stock index fell by 1.2%, and the Dow Jones index fell by 0.6%.
The company Nvidia's shares went down 6.3% after the market closed. This happened because the U.S. government put limits on selling one of its computer chips used for artificial intelligence. Shares of another company, AMD, also went down 7.1% after the U.S. markets closed.
People started to worry about a trade war again. This was because the US government said it would study important minerals, like rare earths. These minerals are used in things like phones, electric cars, and many other products.
In Europe, the main British stock market, the FTSE 100, went down a little. It lost 0.2%. This happened because the government said that prices in the UK did not go up as much in March. This was the second month in a row that prices rose less. The main reason was that gas prices were lower.
In Germany, the DAX stock market went down by 0.7% to 21,107.68 points. In Paris, the CAC 40 also went down by 0.6% to 7,289.67 points.
Stock markets in China fell the most in the area. This happened after China said its economy grew by 5.4% in the last three months of the year. This growth was helped by factories making more goods, people buying more things, and selling more goods to other countries. But if we look at the growth only for those three months (January to March), it was slower, at 1.2%. In the last three months of 2024, it grew faster, at 1.6%.
The Hong Kong stock market went down 2%. The Shanghai market went up a little, 0.1%.
Experts in companies think the economy will grow slower. This is because President Trump put higher taxes on most things from China, and China did the same for things from the U.S.
Experts at ANZ Research said that business is already getting weaker this quarter.
Raymond Yeung and other researchers said that businesses were worried and did less work. They said this happened because President Trump's plans kept changing, not just because of the new taxes.
In Tokyo, the main stock market index, the Nikkei 225, went down by 1%. It is now at 33,920.40. This drop happened because shares of big technology companies went down a lot. For example, Advantest's shares went down by 6.6%, and Disco Corp.'s shares went down by 8%.
Stock markets went down. South Korea's market dropped 1.2%. Australia's market went down a little, less than 0.1%.
The stock market in India did not change much, and the market in Bangkok went down a little, by 0.1%.
On Tuesday, U.S. stocks did not change much. The S&P 500 went down a little (0.2%), and the Dow went down a bit more (0.4%). The Nasdaq index went down very little (less than 0.1%).
Investors waited to see what would happen because they were not sure about President Donald Trump's taxes on goods.
The U.S. bond market seemed calmer after it changed a lot last week. The big changes made people less sure that U.S. government bonds are a safe place for their money when things are difficult.
The interest rate on the 10-year government bond stayed at 4.33%. This rate was lower than it was earlier in the week. When interest rates go down, it often shows that people feel more secure about their money.
The price of the U.S. dollar stopped falling after it went down a lot last week. This made people worry that Trump's trade war could make it a less safe place to put money.
Palantir Technologies' shares went up 6.2% for the second day. This is because NATO said they will use the company's AI technology for their military work.
On Wednesday morning, the price of US oil went down by 69 cents to $60.64 for one barrel. Also, the price of Brent oil, which is used in many countries, went down by 65 cents to $64.01 for one barrel.
Trump's taxes on goods from other countries have made people think that economies will grow more slowly. This means people will need less oil and other materials.
The American dollar went down to 142.26 Japanese yen. It was 143.24 yen before. The euro went up to $1.1377. It was $1.1283 before.
May 2nd, 2025
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