U.S. equities fell sharply led by chipmakers and AI stocks after Fed remarks and Trump’s Strait of Hormuz tariff announcement.
U.S. stocks closed lower with the NASDAQ shedding 1.55% as semiconductor and AI stocks led declines. Applovin, SanDisk, and SK Hynix dropped over 9%, while Nvidia fell 3.52%. The Dow and S&P 500 also declined, down 0.26% and 0.79%, respectively.
Losses accelerated after President Trump announced a 20% tariff on ships transiting the Strait of Hormuz, adding to geopolitical uncertainty. Fed Governor Christopher Waller’s hawkish comments further weighed on sentiment, suggesting another inflation increase could prompt tighter policy. Markets now await Fed Chair Kevin Warsh’s congressional testimony on Tuesday.
The selloff followed a global downturn, with South Korea’s KOSPI plunging 8.95%, setting a bearish tone for U.S. equities at the open.