Global equities broadly declined on Wednesday as Nvidia and other tech firms were significantly impacted by stricter U.S. regulations on the export of advanced computer chips crucial for artificial intelligence applications.

S&P 500 futures experienced a 1.2% decline, while those for the Dow Jones Industrial Average saw a 0.6% reduction.

The shares of chip manufacturer Nvidia saw a decline of 6.3% in post-market trading following their announcement of more stringent US export regulations on a computer chip engineered for artificial intelligence applications. Concurrently, shares of competitor chip producer AMD experienced a 7.1% decrease after the closure of US markets.

Concerns regarding a trade war were also reignited following an announcement from the Trump administration of an investigation into critical mineral imports, including rare earths, which are integral components in smartphones, electric vehicles, and numerous other products.

In early European trading, the UK's FTSE 100 index declined by 0.2% to 8,233.10 following the government's announcement that inflation in the country had decreased for a second consecutive month in March, primarily due to reduced gas prices.

Germany's DAX index experienced a decline of 0.7%, settling at 21,107.68 points, while the CAC 40 in Paris also retracted, shedding 0.6% to close at 7,289.67 points.

Chinese equities experienced notable losses in the region following the government's announcement that the world's second-largest economy achieved a robust annual growth rate of 5.4% in the previous quarter, driven by strong performance in industrial production, retail sales, and exports. However, on a quarterly basis, growth decelerated to 1.2% in the first three months of the year compared to 1.6% in the final quarter of 2024.

Hong Kong's Hang Seng index experienced a 2% decline, closing at 20,922.54, whereas the Shanghai Composite index managed to recover some of its losses, achieving a marginal 0.1% increase to settle at 3,271.19.

Economists in the private sector have revised down their economic outlooks following President Donald Trump's recent imposition of tariffs reaching 145% on most imports from China, while China reciprocally increased its tariffs on US imports to 125%.

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

Raymond Yeung and other researchers from ANZ said in a report after China released its data that the problem with the tariffs is their unpredictability, not the tariffs themselves. They added that President Trump's announcements have clearly affected how businesses feel and what they do.

In Tokyo, the Nikkei 225 index experienced a 1% decline, settling at 33,920.40, primarily influenced by major technology corporations such as Advantest, a producer of chip testing equipment, whose stock fell by 6.6%, and Disco Corp., which saw an 8% drop.

South Korea's Kospi experienced a 1.2% decline, closing at 2,447.43, whilst in Australia, the S&P/ASX 200 registered a marginal decrease of less than 0.1%, ending the session at 7,758.90.

India's Sensex remained relatively stable, while Bangkok's SET saw a marginal decrease of 0.1%.

On Tuesday, major U.S. stock indices showed a modest decline, with the S&P 500 decreasing by 0.2%, the Dow Jones Industrial Average falling by 0.4%, and the Nasdaq composite experiencing a marginal dip of less than 0.1%.

The ambiguity surrounding President Donald Trump's tariffs led investors to remain attentive to future developments.

The U.S. bond market seemed to stabilise following last week's abrupt and significant shifts, which undermined confidence in the reliability of U.S. government bonds as a secure investment during uncertain times.

The yield on the 10-year Treasury remained stable at 4.33%, a decrease from 4.38% late on Monday and 4.48% at the close of the previous week. This contrasts with a mere 4.01% recorded just a week prior. Typically, yields decline when investor sentiment is apprehensive, suggesting that this week's fluctuations have provided a measure of reassurance.

Furthermore, the U.S. dollar's value stabilised after a decline last week, fueling concerns that Trump's trade conflict could be eroding its standing as a secure asset.

Palantir Technologies experienced a significant surge for the second consecutive day, increasing by 6.2%, following NATO's announcement of its intention to integrate the company's artificial intelligence capabilities into its allied command operations.

In early Wednesday trading, the price of U.S. benchmark crude oil declined by 69 cents to $60.64 per barrel, and Brent crude, recognised as the international standard, decreased by 65 cents to $64.01 per barrel.

The implementation of tariffs by the Trump administration has heightened expectations of economic deceleration, thereby diminishing the demand for oil and various other resources.

The U.S. dollar declined to 142.26 Japanese yen, a decrease from its previous value of 143.24 yen, while the euro advanced to $1.1377, up from $1.1283.