Global equities generally declined on Wednesday, following substantial losses in technology firms such as Nvidia, which were significantly impacted by stricter U.S. export regulations concerning sophisticated computer chips integral to artificial intelligence.

Futures contracts for the S&P 500 index declined by 1.2%, whereas those for the Dow Jones Industrial Average saw a 0.6% decrease.

Shares of the chip maker Nvidia dropped by 6.3% after the market closed. This happened after the company announced that the US had put stricter rules on sending out one of its computer chips, which is used for artificial intelligence. Shares of their competitor, AMD, also fell by 7.1% after the US markets closed.

Concerns about a potential trade war resurfaced following an announcement by the Trump administration regarding an inquiry into imports of vital minerals, including rare earths, components essential for smartphones, electric vehicles, and various other goods.

In early European trade, the UK's FTSE 100 index declined by 0.2%, settling at 8,233.10, following the government's announcement that British inflation decreased for the second consecutive month in March, primarily attributable to reduced gas prices.

Germany's DAX index experienced a decline, dropping by 0.7% to reach 21,107.68, while the CAC 40 in Paris saw a decrease of 0.6%, settling at 7,289.67.

Stock markets in China fell the most in the region after the Chinese government announced that their economy, the second biggest in the world, grew by a strong 5.4% in the last year, thanks to good results in factories, shops, and exports. However, if we look at the growth just for the first three months of the year compared to the end of last year, it slowed down to 1.2% from 1.6% in the last three months of 2024.

Hong Kong's Hang Seng index experienced a decline, falling by 2% to stand at 20,922.54 points, whereas the Shanghai Composite index recovered its earlier losses, managing a marginal gain of 0.1% to reach 3,271.19.

Economists in private companies have been lowering their predictions after President Donald Trump recently increased taxes on most goods from China to 145%. In response, China also raised its taxes on goods from the U.S. to 125%.

Analysts at ANZ Research indicated that activity in the current quarter is already showing signs of weakening.

According to Raymond Yeung and other ANZ researchers, the volatility stemming from the unpredictable nature of President Trump's announcements, rather than the tariffs themselves, has been the primary driver of the tariff shock, impacting business sentiment and activity.

In Tokyo, the Nikkei 225 index saw a decline of 1%, settling at 33,920.40, primarily influenced by significant technology firms such as Advantest, a manufacturer of chip testing equipment, whose stock experienced a 6.6% fall, and Disco Corp., which saw its value plummet by 8%.

The Kospi index in South Korea experienced a decline of 1.2%, reaching 2,447.43, whilst Australia's S&P/ASX 200 saw a marginal decrease of less than 0.1%, settling at 7,758.90.

India's Sensex index remained largely stable, while Bangkok's SET experienced a minor decline of 0.1%.

On Tuesday, US stock markets displayed a lack of decisive direction, with the S&P 500 index experiencing a modest decline of 0.2%, while the Dow Jones Industrial Average saw a slightly larger drop of 0.4%, and the Nasdaq composite registered a marginal decrease of under 0.1%.

Uncertainty surrounding President Donald Trump's tariffs led investors to monitor developments closely.

The U.S. bond market seemed to stabilise after last week's abrupt and significant shifts undermined trust in U.S. government bonds as a secure refuge from risks.

The return on the 10-year Treasury remained stable at 4.33%, a decline from 4.38% late Monday and 4.48% at the conclusion of the preceding week. Just one week prior, it had registered at a mere 4.01%. Typically, yields diminish when investors exhibit unease, so the shifts observed this week have provided a measure of confidence.

Concurrently, the U.S. dollar's value stabilised following last week's decline, further fueling concerns that Trump's trade policies could erode its perceived security as a safe-haven asset.

Palantir Technologies' stock rose by 6.2% for the second consecutive day following NATO's announcement that it would integrate the company's artificial intelligence functionalities into its allied command operations.

In early trading on Wednesday, the price of U.S. benchmark crude oil declined by 69 cents, settling at $60.64 per barrel, while Brent crude, considered the global standard, saw a decrease of 65 cents, reaching $64.01 per barrel.

Trump's tariffs have elevated concerns about an economic downturn, diminishing the demand for oil and other commodities.

The U.S. dollar depreciated against the Japanese yen, reaching 142.26 yen from 143.24 yen, whilst the euro appreciated against the dollar, rising to $1.1377 from $1.1283.