Nvidia Selloff, Trump Tariffs Trigger Crypto and Tech Market Slump

Equity and crypto markets turned bearish late Wednesday after Nvidia (NASDAQ:NVDA) shares plunged 8% to $89.10 in after-hours trading. The selloff followed the company’s disclosure of a $5.5 billion charge due to U.S. President Donald Trump’s ban on exporting Nvidia’s H20 AI chip to China. The news came amid heavy put option activity, hinting at investor expectations of a major decline.

Bitcoin (BTC) fell to $83,600, down from a two-week high of $86,440 earlier in the day. XRP, Ripple’s payments token, declined over 2% to $2.08, and Cardano (ADA) dropped 4% to $0.61. The CoinDesk 20 Index, a benchmark for the broader crypto market, lost over 2%, while AI-linked tokens suffered deeper losses amid Nvidia’s slump.

Nasdaq futures dipped over 1%, signaling broader risk-off sentiment across financial markets. Investors are awaiting the U.S. retail sales data for March, expected to show a 1.2% monthly rise versus February’s 0.2%. A stronger reading could ease recession worries, but markets may dismiss it as outdated due to recent escalations in Trump’s trade war with China.

Federal Reserve Chair Jerome Powell is set to speak at the Economic Club of Chicago, a key event for traders watching for rate cut signals. Earlier this week, Fed Governor Christopher Waller warned that if Trump reimposes tariffs announced on April 2—temporarily suspended for most countries except China—the Fed may be forced into emergency rate cuts.

Market-based inflation indicators have declined, suggesting Trump’s tariffs could have a disinflationary effect, giving the Fed more room to lower interest rates if necessary. Traders remain cautious amid growing macroeconomic uncertainty.