Business Desk: After four consecutive sessions of strength, the Indian stock market started trading with a slight decline on Thursday. The main reason for this was the sharp decline in US markets. However, it also saw a recovery later. Amid pressure on chip makers, the US IT index Nasdaq fell by more than 3% on Wednesday.
Experts believe that the semiconductor sector is being affected the most by the escalating tariff war between the US and China. This has increased the concerns of investors. Due to this decline, about $ 1.5 trillion (Rs 12,82,46,67,13,50,000) of market cap was lost from US markets.
US Federal Reserve Chairman Jerome Powell said that the US economic growth rate seems to be slowing down. Imports are increasing to avoid a tariff war, which is likely to put pressure on GDP. The statement deepened the negative sentiment in the market.
The US Commerce Department has imposed new licensing rules on exports of Nvidia and AMD's AI chips to China. Nvidia has said that these restrictions could cost the company about $ 5.5 billion.
The news had a direct impact on the Nasdaq, which closed down 3%, or 516 points. The S&P 500 also fell more than 2%, while the Dow Jones fell more than 1.5%.
The biggest declines among technology stocks were recorded in Nvidia and AMD, whose stocks fell more than 8%. In addition, shares of Meta and Microsoft fell 2%, and Tesla's stocks fell more than 3%.