US stocks retreated Monday as the geopolitical situation, an upcoming rate announcement from the Fed, and inflation figures pending came to a head.
The S&P 500 and Nasdaq Composite indexes dipped after Monday’s open, each trading 0.4% lower at 2:15 pm ET.
The share price of Nvidia — Big Tech’s darling that has surged almost 200% this year — slipped on Monday on news that China opened a probe into the chipmaker on suspicions of anti-monopoly law violations. It comes just days after Joe Biden increased limits for semiconductor exports. According to the administration, this investigation is part of an attempt to limit China’s access to advanced AI technology.
Last week, China also banned the export of three rare mineral and imposed sanctions against US defense companies and executives. The final weeks leading up to Donald Trump’s inauguration are beginning to look like the start of a major supply-chain war.
The Chinese government is taking an aggressive approach after initially opting for parallel tariffs to counter the US’s actions during Trump’s first term. Trade War 2 promises to be much more dirty.
Nvidia didn’t respond to Blockworks’ request for comment, and it hasn’t made public statements regarding the probe. Nvidia has a version of their chips with fewer features that they have made available to China as a result of Biden’s policy. The shares of Nvidia were trading at 2.4% less Monday afternoon, 2:15pm ET.
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