May 2nd, 2025
Most shares around the world went down on Wednesday. This happened because the U.S. made it harder for companies like Nvidia to sell their advanced computer chips to other countries. These chips are used for artificial intelligence.
The price of the S&P 500 went down by 1.2%, and the price of the Dow Jones went down by 0.6%.
The company Nvidia's shares went down by 6.3% because the US put new rules on selling a computer chip used for AI. Shares of another company, AMD, also fell by 7.1% after the market closed.
Also, worries about trade started again. This happened after the Trump government said they would look into important minerals, like rare earths. These minerals are used in phones, electric cars, and many other things.
In Europe, the British stock market FTSE 100 went down a little, 0.2%, to 8,233.10. 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 this happened. The main reason was that gas prices were lower.
In Germany, the DAX stock market went down by 0.7% to 21,107.68. In Paris, the CAC 40 stock market also went down by 0.6% to 7,289.67.
Stock markets in China went down the most in Asia. This happened after the Chinese government said their economy grew by 5.4% in the last three months of the year. This growth was good because factories made a lot, people bought a lot, and China sold a lot to other countries. But, if we compare these three months to the three months before, the economy grew slower, from 1.6% to 1.2%.
The stock market in Hong Kong went down by 2%. The stock market in Shanghai went up a little, by 0.1%.
People who study money and business now think the economy will not be as good as they first thought. This is because President Donald Trump put higher taxes on most things from China, making them 145%. China also put higher taxes on things from the U.S., making them 125%.
Experts at ANZ Research said that business is already getting weaker now.
Raymond Yeung and other people from ANZ wrote in a report. They said the problems are because the President makes sudden announcements. This makes businesses feel unsure. It is more than the new taxes themselves.
In Tokyo, the Nikkei 225 stock index went down by 1% to 33,920.40. This happened because the prices of shares from big technology companies like Advantest and Disco Corp. fell a lot.
Stock markets went down in South Korea and Australia.
The stock market in India stayed almost the same, and the stock market in Bangkok went down a little.
On Tuesday, stock prices in the U.S. changed a little. The S&P 500 went down 0.2%, and the Dow went down 0.4%. The Nasdaq composite went down a very small amount, less than 0.1%.
Because no one knew what President Trump would do with taxes on imported goods, investors waited to see what would happen.
The U.S. bond market seemed calmer after it changed a lot last week. People were not sure if U.S. government bonds were still a safe place for their money when there were problems.
The interest rate on government bonds stayed the same at 4.33%. It was lower than before. Interest rates usually go down when people are worried about money. This week, the change made people feel better.
The U.S. dollar stopped falling after it dropped a lot last week. This made people more worried that Trump's trade problems could make the dollar a less safe place to put their money.
The company Palantir's stock went up by 6.2% for the second day. This happened because NATO said they will use the company's AI technology.
Earlier on Wednesday, the price of American oil went down by 69 cents to $60.64 a barrel. The price of international oil also went down by 65 cents to $64.01 a barrel.
Because of Trump's taxes on imports, people think economies will grow more slowly, so they will not need as much oil and other things.
The U.S. dollar went down to 142.26 Japanese yen. Before, it was 143.24 yen. The euro went up to $1.1377. Before, it was $1.1283.
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