Global equity markets experienced a general decline on Wednesday, predominantly influenced by the stringent export restrictions imposed by the U.S. on cutting-edge computer chips essential for artificial intelligence, which significantly impacted major technology firms like Nvidia.

S&P 500 futures declined by 1.2%, while Dow Jones Industrial Average futures decreased by 0.6%.

Shares in the chip manufacturer Nvidia experienced a 6.3% decline in post-market trading following its announcement that the United States had imposed more stringent restrictions on the export of one of its computer chips intended for artificial intelligence applications. In response, shares of its competitor, AMD, also fell by 7.1% after the closure of US markets.

Worries about a trade war were reignited following an announcement by the Trump administration of a probe into critical mineral imports, including rare earths, vital components in modern electronics like smartphones, electric vehicles, and numerous other goods.

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

In Germany, the DAX index declined by 0.7% to reach 21,107.68, paralleled by a 0.6% drop in Paris's CAC 40, closing at 7,289.67.

Stock markets in China fell more than others in the region after the Chinese government said the country's economy, the second largest in the world, grew by a strong 5.4% over the past year in the last three months. This growth was helped by good results in factories, shops, and exports. But compared to the previous three months, growth was slower, at 1.2% from January to March, down from 1.6% in the last three months of 2024.

The Hang Seng index in Hong Kong declined by two per cent, closing at 20,922.54, whereas the Shanghai Composite index recovered some of its previous losses, rising marginally by 0.1 per cent to 3,271.19.

Following President Donald Trump's recent imposition of tariffs, escalating duties on most Chinese imports to 145%, and China's reciprocal action of increasing tariffs on US imports to 125%, private sector economists have been revising down their economic projections.

According to analysts at ANZ Research, economic activity during the present quarter is showing signs of deterioration.

Raymond Yeung and other ANZ researchers said in a report that they think the main problem with tariffs is how unpredictable they are, not the tariffs themselves. They explained that President Trump's announcements have negatively affected how businesses feel and what they do, after the data from China was released.

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

South Korea's Kospi index experienced a decline of 1.2%, closing at 2,447.43, concurrently, Australia's S&P/ASX 200 saw a marginal decrease of under 0.1%, settling at 7,758.90.

India's Sensex showed minimal movement, while Bangkok's SET index declined slightly by 0.1%.

On Tuesday, US stocks showed marginal movement, with the S&P 500 experiencing a 0.2% decline and the Dow registering a 0.4% decrease, while the Nasdaq composite recorded a fractional drop of less than 0.1%.

Investors remained vigilant, awaiting further developments, due to the ongoing uncertainty surrounding President Donald Trump's tariffs.

The U.S. bond market seemed to stabilise following last week's abrupt and dramatic fluctuations, which unsettled confidence in U.S. government bonds' role as a sanctuary against risk.

The return on 10-year Treasury notes remained stable at 4.33%, representing a decline from 4.38% late on Monday and 4.48% at the close of the preceding week. Just a week prior, the yield stood at a mere 4.01%. Typically, yields decrease when investors exhibit apprehension, thus this week's fluctuations have instilled a sense of confidence.

The U.S. dollar's value stabilised following its sharp decline last week, intensifying concerns that Trump's trade policies could be eroding its position as a secure investment.

Palantir Technologies experienced a 6.2% increase, marking its second consecutive day of gains, following NATO's announcement that it will deploy the company's artificial intelligence capabilities within its allied command operations.

In earlier trading on Wednesday, the benchmark for U.S. crude oil saw a decline of 69 cents, reaching $60.64 per barrel, while Brent crude, the global standard, decreased by 65 cents to $64.01 per barrel.

Trump's tariffs have heightened concerns about an economic deceleration, consequently reducing demand for oil and other commodities.

The value of the U.S. dollar depreciated against the Japanese yen, dropping from 143.24 to 142.26, while the euro appreciated, ascending from $1.1283 to $1.1377.