Global equity markets generally trended downwards on Wednesday, after stringent US restrictions on the export of sophisticated computer chips essential for artificial intelligence applications significantly impacted Nvidia and other technology firms.

The futures contracts for the S&P 500 index declined by 1.2%, concurrently with a 0.6% reduction in those for the Dow Jones Industrial Average.

Shares of chip maker Nvidia dropped by 6.3% after the market closed. This happened because the U.S. put stricter rules on exporting one of its computer chips used for artificial intelligence. Shares of rival chip maker AMD also fell by 7.1% after U.S. markets closed.

Concerns over a potential trade war were reignited by the Trump administration's announcement of an investigation into critical mineral imports, including rare earths, essential for manufacturing products like smartphones and electric vehicles.

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

In Germany, the DAX index experienced a 0.7% decline, settling at 21,107.68, while the CAC 40 in Paris shed 0.6%, closing at 7,289.67.

Chinese stocks fell more than others in the region after the Chinese government announced that the country's economy, which is the second largest in the world, grew at a good rate of 5.4% per year in the last quarter. This growth was helped by strong industrial production, sales in shops, and exports. However, when looking at the growth from one quarter to the next, it slowed down to 1.2% from January to March, which is less than the 1.6% growth seen in the last three months of 2024.

Hong Kong's Hang Seng index experienced a notable decline, falling by two percent to settle at 20,922.54, whereas the Shanghai Composite index managed to recoup its earlier losses, registering a marginal increase of 0.1 percent to reach 3,271.19.

After President Donald Trump increased tariffs on most imports from China to 145%, and China did the same for imports from the U.S. to 125%, economists in the private sector have lowered their predictions.

According to analysts at ANZ Research, activity in the current quarter is already showing signs of weakening.

Raymond Yeung and other ANZ researchers wrote in a report after China's data came out that they believe the problem with the tariffs is more about the uncertainty they create than the tariffs themselves. They said President Trump's announcements have hurt how businesses feel and what they do.

Tokyo's Nikkei 225 index experienced a 1% decline, settling at 33,920.40, significantly impacted by major technology firms; for instance, Advantest, a manufacturer of chip testing equipment, saw its shares fall by 6.6%, while Disco Corp. suffered an 8% drop.

The South Korean Kospi index experienced a decline, dropping by 1.2% to reach 2,447.43, simultaneously, Australia's S&P/ASX 200 saw a marginal decrease of less than 0.1%, settling at 7,758.90.

India's Sensex remained largely unaltered, while Bangkok's SET experienced a marginal 0.1% dip.

On Tuesday, U.S. stock indices exhibited modest fluctuations, with the S&P 500 declining by 0.2% and the Dow Jones Industrial Average experiencing a 0.4% decrease, while the Nasdaq composite registered a marginal dip of less than 0.1%.

The ambiguity surrounding President Donald Trump's tariffs compelled investors to remain vigilant for subsequent developments.

Following a period of significant volatility that unsettled investor confidence in the reliability of U.S. government bonds as a secure investment option amidst uncertainties, the U.S. bond market demonstrated signs of stabilization.

The yield on the 10-year Treasury note remained stable at 4.33%, having declined from 4.38% late Monday and 4.48% at the close of the previous week, a notable increase from 4.01% a week prior. Typically, yields decrease during periods of investor apprehension, suggesting that this week's fluctuations have provided a degree of confidence.

Following a sharp decline last week, the U.S. dollar’s value stabilised, intensifying concerns that Trump’s trade war might be eroding its credibility as a secure investment refuge.

Palantir Technologies extended its gains for a second consecutive day, rising 6.2%, following NATO's announcement that it would integrate the company's artificial intelligence expertise into its allied command operations.

In early transactions on Wednesday, the price of U.S. benchmark crude oil decreased by 69 cents, settling at $60.64 per barrel, while Brent crude, recognized as the global standard, saw a reduction of 65 cents, reaching $64.01 per barrel.

The imposition of tariffs by Trump has heightened anticipation that economies will decelerate, thereby diminishing the demand for oil and other resources.

The dollar declined against the yen, settling at 142.26 from its previous level of 143.24 yen, while the euro strengthened, reaching $1.1377 compared to $1.1283.