Global Markets Drift Lower As Us Announces Controls On AI Chips

Bangkok: World shares were mostly lower on Wednesday as Nvidia and other technology companies were walloped by tighter US controls on exports of advanced computer chips used for artificial intelligence.

The future for the S&P 500 skidded 1.2 per cent while that for the Dow Jones Industrial Average lost 0.6 per cent. Chip maker Nvidia’s shares fell 6.3 per cent in after-hours trading after it said the US had imposed stricter controls on its exports of one of its computer chips designed for use in artificial intelligence. Rival chip maker AMD’s shares dropped 7.1 per cent after US markets closed.

Trade war concerns also were revived by a Trump administration announcement of an investigation into imports of critical minerals such as rare earths, which are used in smart phones, electric vehicles and many other products.

In early European trading, Britain’s FTSE 100 lost 0.2 per cent to 8,233.10 after the government said inflation in the UK fell for the second month running in March largely as a result of lower gas prices. Germany’s DAX fell 0.7 per cent to 21,107.68, while the CAC 40 in Paris gave up 0.6 per cent to 7,289.67.

Stocks in China led the regional declines after the Chinese government reported the world’s second largest economy grew at a strong 5.4 per cent annual rate in the last quarter, helped by strong industrial production, retail sales and exports.