May 2nd, 2025
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Many company shares around the world went down on Wednesday. This happened because the U.S. made it harder to send special computer parts to other countries. These parts are used by companies like Nvidia to make artificial intelligence technology.
The S&P 500 stock index is expected to fall by 1.2%, and the Dow Jones index is expected to fall by 0.6%.
The company Nvidia makes computer chips. Their shares went down 6.3% because the U.S. made it harder for them to sell a chip used for AI in other countries. Another chip company, AMD, also saw its shares go down 7.1% after the market closed.
People started worrying about a trade war again. This happened after the Trump government said they would study important minerals, like rare earths. These minerals are used in things like phones and electric cars.
In Europe, the UK stock market index, the FTSE 100, went down a little, by 0.2%. This happened after the government said that prices in the UK did not rise as much in March. Prices were lower for the second month in a row, mostly because gas cost less.
In Germany, the DAX stock market went down by 0.7% to 21,107.68. In Paris, the CAC 40 also went down by 0.6% to 7,289.67.
Stock prices in China fell the most in the region. This happened after the Chinese government said their economy, the second biggest in the world, grew by 5.4% in the last three months. This growth was good because factories made many things, people bought many things, and the country sold many things to other countries. But, compared to the three months before, the growth was slower. It grew only 1.2% from January to March, but it grew 1.6% from October to December 2024.
In Hong Kong, the stock market index called Hang Seng went down by 2% to 20,922.54. In Shanghai, the stock market index went up a little, by 0.1%, to 3,271.19.
Experts who work for companies now think the economy will not grow as much. This is because President Donald Trump recently put higher taxes on most things coming from China. China also put higher taxes on things coming from the U.S.
Experts at ANZ Research said that business is already getting slower this quarter.
Raymond Yeung and other experts from ANZ said that businesses were surprised by the sudden changes in taxes on imports. They said this surprise hurt businesses more than the taxes themselves. They also said that President Trump's announcements made businesses feel worried and caused problems for their work.
In Tokyo, the main stock index, the Nikkei 225, went down by 1%. This was because big technology companies like Advantest and Disco Corp. had problems. For example, Advantest's shares went down by 6.6%, and Disco Corp.'s shares went down by 8%.
Stock markets in South Korea and Australia went down a little.
The stock market in India, called the Sensex, stayed almost the same. The stock market in Bangkok, called the SET, went down a little, by 0.1%.
On Tuesday, stock prices in the U.S. went down a little. The S&P 500 fell a little, and the Dow went down a bit more. The Nasdaq also went down, but only a very small amount.
Because people were not sure about President Trump's taxes on goods from other countries, investors waited to see what would happen.
The U.S. bond market seemed quieter after it changed a lot last week. People were not as sure that U.S. government bonds were a safe place for their money when things were risky.
The interest rate on a 10-year government bond stayed at 4.33%. This is lower than 4.38% on Monday and 4.48% last week. A week before that, it was only 4.01%. When people are worried about money, interest rates usually go down. So, the rates this week have made people feel better.
The U.S. dollar stopped falling after it dropped a lot last week. This made people worry more that Trump's trade war could make the dollar less safe to invest in.
The company Palantir's stock went up 6.2% for the second day. This happened because NATO said they will use Palantir's AI technology to help them in their military work.
On Wednesday morning, the price of American oil went down by 69 cents. It cost $60.64 for one barrel. The price of international oil, called Brent crude, went down by 65 cents. It cost $64.01 for one barrel.
Trump's taxes on imports have made people think economies will get slower, so they need less oil and other materials.
The U.S. dollar went down against the Japanese 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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