Global stock markets largely declined on Wednesday as Nvidia and other technology firms experienced significant losses due to stricter U.S. export regulations concerning advanced computer chips essential for artificial intelligence.

The S&P 500 futures declined by 1.2%, while the Dow Jones Industrial Average futures saw a loss of 0.6%.

Nvidia's stock experienced a significant decline of 6.3% in post-market trading following the company's announcement of stricter U.S. export regulations concerning one of its advanced computer chips specifically developed for artificial intelligence applications. Concurrently, shares of its competitor, AMD, also saw a substantial decrease of 7.1% after the conclusion of U.S. market hours.

Concerns about a trade war resurfaced following a Trump administration declaration of an investigation into vital mineral imports, including rare earths, integral components in smartphones, electric vehicles, and numerous other goods.

Britain's FTSE 100 index registered a modest decline of 0.2%, settling at 8,233.10 in early European trading, following the government's announcement that UK inflation had decreased for a second consecutive month in March, primarily due to a reduction in gas prices.

In Germany, the DAX index registered a decline of 0.7%, settling at 21,107.68, concurrently, Paris's CAC 40 surrendered 0.6%, closing at 7,289.67.

Chinese equities spearheaded losses across the region following the government's announcement that the world's second-largest economy achieved a robust 5.4% annual growth rate in the previous quarter, bolstered by solid performances in industrial output, retail, and exports. However, on a quarterly basis, expansion decelerated to 1.2% in the first quarter of 2024, down from 1.6% in the final quarter of 2023.

In Hong Kong, the Hang Seng index declined by 2%, closing at 20,922.54, whereas the Shanghai Composite index recovered earlier losses, registering a modest gain of 0.1% to reach 3,271.19.

Economists in the private sector have revised down their predictions following President Donald Trump's recent decision to increase tariffs on the majority of imports from China to 145%, with China simultaneously elevating its customs duties on imports from the U.S. to 125%.

Analysts at ANZ Research indicated that economic activity in the current quarter is already experiencing a decline.

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

In Tokyo, the Nikkei 225 index declined by 1% to 33,920.40, influenced by downturns in prominent technology companies such as chip testing equipment manufacturer Advantest, whose stock decreased by 6.6%, and Disco Corp., which saw a sharp decline of 8%.

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

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

On Tuesday, U.S. equity markets showed little decisive movement, with the S&P 500 index experiencing a marginal decline of 0.2% and the Dow Jones Industrial Average decreasing by 0.4%, while the Nasdaq composite saw a negligible loss of less than 0.1%.

Uncertainty regarding President Donald Trump's tariffs caused investors to monitor developments closely.

The U.S. bond market seemed to stabilise following significant volatility last week, which had undermined faith in U.S. government bonds as a secure asset during uncertain times.

The yield on the 10-year Treasury remained stable at 4.33%, having decreased from 4.38% late Monday and 4.48% by the close of last week, significantly higher than the 4.01% a week prior. Typically, yields decline when investors exhibit unease, thus this week's fluctuations have provided a measure of stability.

The U.S. dollar's value stabilized after its decline last week, intensifying concerns that Trump's trade policies could erode its standing as a reliable investment during uncertain times.

Palantir Technologies extended its rally with a 6.2% increase, following NATO's announcement that it intends to integrate the company's artificial intelligence functionalities into its allied command operations.

Early Wednesday trading saw U.S. benchmark crude oil decline by 69 cents, reaching $60.64 per barrel, while the international benchmark, Brent crude, decreased by 65 cents to $64.01 per barrel.

The implementation of Trump's tariffs has heightened concerns about a potential economic slowdown, subsequently diminishing the need for oil and other raw materials.

The U.S. dollar experienced a decline against the Japanese yen, dropping to 142.26 from 143.24, while the euro appreciated, climbing to $1.1377 from $1.1283.