When Chips Fall, So Do Crypto Dreams: Nvidia’s $5.5B Blunder

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Ce qu’il:

  • Nvidia shares took a nosedive 🎢, dropping 8% after the U.S. banned its H20 chip sales to China, sending shivers through equities and the crypto market.
  • Bitcoin, XRP, and ADA joined the pity party 🎉, with declines following Nvidia’s after-hours trading crash.
  • The market is now playing the waiting game 🕰️, eyeing the U.S. retail sales report and Federal Reserve Chairman Jerome Powell’s speech for some economic tea leaves.

Late Wednesday, the mood in the equity and crypto markets turned as sour as a lemon 🍋 left in the sun. Nvidia shares crashed in after-hours trading, thanks to a $5.5 billion charge tied to the Trump administration’s decision to ban the company’s H20 chip sales to China. Because, you know, why not add a little chaos to the mix?

Bitcoin, the king of cryptocurrencies 👑, fell to $83,600, retreating from its two-week high of $86,440. XRP, the payments-focused token, followed suit, dropping over 2% to $2.08, while Cardano‘s ADA token slipped 4% to $0.61. The CoinDesk 20 Index, a broader market gauge, weakened over 2%. It’s like watching a domino effect, but with money 💸.

Meanwhile, coins supposedly linked to artificial intelligence (AI) continued to flounder 🤖 as Nvidia shares tanked 8% to $89.10. The company disclosed in a regulatory filing that it expects to write down $5.5 billion in the fiscal first quarter due to the new restrictions on exports of its H20 chip to China. Because nothing says “market stability” like a $5.5 billion write-down, right?

The news came a day after unusual activity in Nvidia put options hinted at an impending market swoon. It’s like the market whispered, “Brace yourselves, winter is coming ❄️.”

The futures tied to the Nasdaq index also fell over 1%, offering negative cues to risk assets in general. Because why stop at one market when you can drag them all down?

The next catalyst awaiting release Wednesday morning Eastern time is the U.S. retail sales report for March. Economists polled by Dow Jones expect a 1.2% increase in consumer spending on the month, up from a 0.2% climb in February. Because nothing says “economic recovery” like a little retail therapy 🛍️.

A better-than-expected report might help ease recession fears triggered by President Donald Trump’s trade war with China and other trading partners. But let’s be real, markets might just dismiss it as backward-looking, failing to account for the major escalation in trade tensions seen this month. Because who needs optimism when you can have pessimism?

Federal Reserve Chairman Jerome Powell is also scheduled to speak on Wednesday at the Economic Club of Chicago on his outlook for the U.S. economy. All eyes are on Powell 👀. Markets are holding their breath for any hint the Fed might be forced to cut rates sooner than expected. Because nothing says “economic stability” like a little Fed-induced suspense.

Forward-looking market-based measures like inflation breakevens have dropped amid trade tensions, pointing to the disinflationary impact of Trump’s tariffs. That could provide the Fed with some leeway to cut rates. Because who needs inflation when you can have disinflation?

Earlier this week, Federal Reserve Governor Christopher Waller said the bank would be forced to quickly make a series of “bad news” rate cuts if the U.S. president reimposes the levies unveiled on April 2. Trump announced sweeping tariffs on 180 nations on April 2 but quickly suspended them for most nations, excluding China, for 90 days. Because nothing says “economic strategy” like a little tariff whiplash.

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2025-04-16 03:54