May 2nd, 2025
Most stock prices around the world went down on Wednesday. This was because the US government made it more difficult for companies like Nvidia to sell their advanced computer chips for AI to other countries.
The S&P 500 is expected to go down by 1.2%, and the Dow Jones is expected to fall by 0.6%.
The price of Nvidia's shares went down a lot, 6.3%, because the U.S. government made it harder for them to sell a special computer chip used for AI. The shares of another company that makes chips, AMD, also went down 7.1% after the market closed.
People started to worry about a trade war again. This happened because the Trump government said they would check minerals coming from other countries. These minerals are very important, like rare earths. We use them in things like phones, electric cars, and many other products.
This morning in Europe, the UK stock market called FTSE 100 went down a little, by 0.2%. It is now at 8,233.10. This happened after the government said that prices in the UK went down in March for the second month. This was mainly because gas prices were lower.
The main stock market in Germany, the DAX, went down a little, by 0.7%. The main stock market in Paris, the CAC 40, also went down a little, by 0.6%.
Stock markets in China went down more than others in the area. This happened after China said their economy grew by 5.4% in the last three months of the year. This was a good number because factories made many things, people bought many things, and they sold many things to other countries. But from the end of last year to the start of this year, the economy grew slower, only 1.2% compared to 1.6% before.
The stock market in Hong Kong went down by 2%. The stock market in Shanghai went up a little by 0.1%.
Business experts are now saying their predictions are not as good. This is because President Donald Trump recently put higher taxes on most things from China, up to 145%. China also put higher taxes on things from the U.S., up to 125%.
Experts at ANZ Research said things are already getting weaker now.
We think the sudden high taxes are a problem because we don't know what will happen next. It's not just about the tax amount. President Trump's words have changed how businesses feel and what they do, said Raymond Yeung and others from ANZ in a report.
In Tokyo, the Nikkei 225 index went down by 1% to 33,920.40.
South Korea's stock market went down a little, and Australia's stock market went down just a tiny bit.
In India, the Sensex index did not change much. In Bangkok, the SET index went down a little, by 0.1%.
On Tuesday, American stocks did not change much. The S&P 500 went down a little, by 0.2%, and the Dow went down by 0.4%. The Nasdaq went down a very small amount, less than 0.1%.
Because people were not sure about President Trump's taxes on goods, investors waited to see what would happen next.
The U.S. bond market seemed calmer after it changed a lot last week. These big changes made people less sure if U.S. government bonds were a safe place for money when there are problems.
The interest rate on government bonds that pay in 10 years stayed at 4.33%. This is lower than 4.38% on Monday and 4.48% last week. A week before, it was 4.01%. When people are worried about money, interest rates often go down. So, the rates this week show people are less worried.
The U.S. dollar's value stopped falling after it dropped a lot last week. This made people more worried that Trump's trade arguments could make the dollar a less safe place to invest money.
Palantir's shares went up by 6.2% for the second day. This is because NATO said it will use the company's AI technology in its work.
On Wednesday morning, the price of US oil went down by 69 cents. One barrel cost $60.64. The price of Brent crude oil, which is the main type of oil in the world, also went down by 65 cents. One barrel cost $64.01.
Trump's taxes have made people think that economies will be slower, so they want less oil and other things.
The dollar went down against the yen. It changed from 143.24 yen to 142.26 yen. The euro went up against the dollar. It changed from $1.1283 to $1.1377.
May 2nd, 2025
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