Markets Roiled as U.S. Tariff Blitz on China Sparks Flight to Gold, Tech Rout
Global financial markets were thrown into turmoil Wednesday after the U.S. unveiled sweeping new tariffs on Chinese goods, triggering a rush into safe-haven assets and a sharp retreat from risk-heavy tech stocks.
The tariffs—reaching as high as 245%—mark a significant escalation in trade hostilities, coming in response to China’s tightening grip on strategic exports like gallium, germanium, and rare earth elements crucial to high-tech manufacturing.
Investors wasted no time shifting gears. Gold prices surged more than 2% to breach $3,300 per ounce, setting a new record as demand for stability soared. Meanwhile, the dollar slipped, with the Dollar Index falling below 100, as the euro and yen gained strength.
Equity markets turned sour. Nasdaq futures tumbled more than 2%, with tech names leading the downturn. Nvidia bore the brunt, dropping 7% in early trading after warning that new U.S. restrictions on AI chip exports to China could cost it $5.5 billion in revenue—stoking fears of a broader semiconductor slump.
Bitcoin, often dubbed “digital gold,” failed to shine under pressure, slipping to $83,000 and mirroring the tech sector’s downturn. The move reinforced its current role as a high-beta asset rather than a crisis hedge.
With trade tensions flaring and earnings risks mounting, investors are bracing for more turbulence in the days ahead.
