US stocks fell on Wednesday, dragged down by a sharp sell-off in tech stocks, as renewed trade war concerns rattled investors.
The Nasdaq Composite led losses, dropping 2.2%, with Nvidia (NVDA) sliding more than 6% and Tesla (TSLA) tumbling 5.5%.
The S&P 500 declined 1.2%, while the Dow Jones Industrial Average dipped 119 points (0.3%).
Investor sentiment weakened after the White House announced President Donald Trump would unveil new auto import tariffs at a press conference, intensifying fears of escalating trade tensions.
Major automakers reacted swiftly to the news, with General Motors (GM) and Ford (F) shedding more than 1%, while Stellantis (STLA) dropped 2%.
The announcement comes ahead of additional sector-specific trade levies expected next week, though Trump signaled that the tariffs may be more “lenient than reciprocal.”
Data center stocks slump as AI spending slows
Stocks tied to data center infrastructure suffered heavy losses, led by Vertiv Holdings (VRT), which plunged 12%, marking its worst one-day decline since July.
TD Cowen warned that slower AI-driven data center upgrades were impacting demand, with hyperscale redesigns for higher densities delaying new equipment purchases.
Other data center-related stocks fell in sympathy:
- Eaton Corp. (ETN) slid 5%
- Trane Technologies (TT) dropped 3%
- Hubbell (HUBB) declined 2%
Vertiv, a key beneficiary of the AI boom, soared 137% in 2024 and 252% in 2023, riding the demand surge sparked by ChatGPT and other AI-driven technologies.
Gold prices could hit $3,500 as safe-haven demand surges
Gold prices continued their rally, with Bank of America forecasting that the precious metal could reach $3,500 per ounce within two years.
The yellow metal has climbed 14% this year, crossing $3,000 per ounce for the first time amid geopolitical tensions and Trump’s trade policies, which have driven investors toward safe-haven assets.
Gold was last trading at $3,024.80 per ounce, gaining 6% in March alone as central bank demand—particularly from China—remains strong.
Rosenblatt says ‘buy the dip’ on USDC growth
Coinbase (COIN) saw a pullback in trading volumes amid cautious crypto market sentiment, but Rosenblatt Securities remains bullish.
Analyst Chris Brendler highlighted that stablecoin demand, particularly from USD Coin (USDC)—which enjoys a 50% revenue-sharing deal with Coinbase—is a major tailwind for the exchange.
“Investors underestimate Coinbase’s non-trading revenue potential, especially in this political environment,” Brendler noted, maintaining a buy rating on the stock.
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