Stocks fell sharply on Wednesday as a stark warning from Nvidia roiled global tech and concerns from Federal Reserve Chair Jerome Powell about the economic impact of tariffs raised alarm among skittish investors.

The Dow Jones Industrial Average lost 699.57 points, or 1.73%, closing at 39,669.39. The S&P 500 dropped 2.24% to end at 5,275.70, led down by the information technology sector. The Nasdaq Composite pulled back 3.07% to close at 16,307.16. The tech-heavy index ended the day about 19% off its closing high, sliding closer to bear market territory.

Shares of Nvidia sank 6.9% after the chip giant said it will post a $5.5 billion quarterly charge related to exporting its H20 graphics processing units to China and other nations. The company said in a filing that the U.S. government required a license to send chips from the U.S. to China.

The stock was also under pressure after The New York Times reported that President Donald Trump's administration was taking steps to crack down on Chinese startup DeepSeek, to which Nvidia provides chips.

Other chipmakers followed Nvidia lower, with the VanEck Semiconductor ETF (SMH) down more than 4%. AMD fell 7.4%, while Micron Technology slid 2.4%. Adding to the broader chip decline was a disappointing earnings report from ASML, whose U.S.-listed shares dropped 7%.

"The S&P 500 is just much more of a technology-driven index than it has been in the past," said Zachary Hill, head of portfolio management at Horizon Investments. "It has a disproportionate impact, both to the upside and downside, as we've seen. We saw it last week, and now we're seeing it reverse."

Tariff worries rattle markets again

Stocks slid to session lows in afternoon trading after Fed Chair Powell said Trump's tariffs could pose a challenge for the central bank. Powell said during a Q-and-A session that levies could drive up inflation in the near term and are "likely to move us further away from our goals."

"We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension," Powell said in prepared remarks before the Economic Club of Chicago. "If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close."

Financial markets have been rattled since Trump announced levies on many countries earlier this month. While some of those duties were put on hold for 90 days last week, China was excluded from that delay. Trump announced an exemption on tariffs against smartphone and PC imports over the weekend, though he later hinted that this was only temporary.

Since the Trump administration first announced its "reciprocal" tariffs on April 2, the S&P 500 has slid roughly 7% and the Nasdaq Composite has dropped 7.4%. The Dow has lost about 6%.

Stocks finish lower

Stocks closed Wednesday's session in the red.

The Dow and S&P 500 dropped 1.7% and 2.2%, respectively. The Nasdaq Composite slid 3.1% as tech led the market slide.

— Alex Harring

Loop Capital lowers price target on Shopify

Loop Capital cut its price target on Shopify on concerns of an economic slowdown, citing a softening in its latest quarterly survey of merchants on the online platform. It did, however, reiterate a buy rating on the stock.

Analyst Anthony Chukumba lowered his price target to $120 from $150, a change that nevertheless implies more than 40% upside for Shopify shares from Tuesday's close.

"The merchant feedback largely worsened sequentially, which we think could be an early sign of a looming recession," Chukumba wrote. "That said, we believe even if Shopify's top-line growth slows this year operating and free cash flow margins will expand due to the company's increased utilization of AI."

"While we are lowering our Shopify price target to $120 from $150 to reflect increased near-term uncertainty and reduced tech sector valuations, we maintain our Buy rating," he added.

— Sarah Min

Fear gauge spikes

After a recent pullback, Wall Street's "fear gauge" is once again moving higher.

The CBOE Volatility Index, or VIX, added more than 4 points, last trading above 34. That marks a turn after three straight sessions of declines.

The index spiked above 60 earlier this month as Trump's tariff policy rattled financial markets.

— Alex Harring

Energy sector gains while market falls

Energy is up nearly 1%, the only sector making gains today with the S&P 500 down nearly 3%.

Energy stocks are rising as U.S. crude oil closed nearly 2% higher on a new round of U.S. sanctions targeting Iran. APA Corporation, Devon Energy, Diamondback Energy and Targa Resources are all up more than 1%. Exxon and Chevron are both up less than 1%.

— Spencer Kimball

Nasdaq 100 drops 4%, weighed lower by semiconductor stocks

The Nasdaq 100 shed more than 4% on Wednesday after comments from Federal Reserve Chair Jerome Powell that recent tariffs could pose a challenge sent stocks into a downward spiral.

The concentrated tech index was led lower by declines in Nvidia, which lost more than 10% after the company said it will record a $5.5 billion charge tied to exporting H20 graphics processing units to China, along with other destinations.

Fellow semiconductor stock Advanced Micro Devices also fell 10% on Wednesday, after the company said it expects that the latest U.S. export restrictions could result in charges of around $800 million.

Shares of ASML also weighed the Nasdaq 100 down on Wednesday. The Dutch semiconductor equipment firm tumbled 8% after ASML missed order expectations and warned of greater demand uncertainty from China tariff restrictions.

Other big decliners in the index were Palantir Technologies, KLA, AppLovin and ON Semiconductor, all trading around 8% lower.

— Lisa Kailai Han

Amgen, Disney among stocks weighing on Dow

The Dow has now dropped more than 800 points on Wednesday as the market weakness spreads beyond technology stocks.

Nvidia is the worst performer in the blue-chip Dow, dropping more than 9%. However, some notable nontech stocks in 30-stock group are also falling. Amgen has dropped more than 4%, making it the worst-performing Dow stock outside of Big Tech.

Walt Disney, 3M and Walmart are all down more than 3% each. Pharmaceutical giant Merck is down 2.7%, as is Home Depot.

— Jesse Pound

Morgan Stanley cuts Microsoft price target, cites macro uncertainty

Microsoft shares could continue to face pressure over the coming months, according to Morgan Stanley.

The firm, which has an overweight rating on the "Magnificent Seven" name, slashed its price target to $472 from $530. That reflects more than 22% upside from Tuesday's close.

That revision comes as shares fell nearly 3% in afternoon trading on Wednesday amid a risk-off environment exacerbated by uncertainty surrounding the Trump administration's tariffs and the U.S. economic outlook. The move lower puts the stock's year-to-date loss at more than 11%.

"Investor sentiment remains negative as a 'wall of worry' around macro and micro demand impacts dominates the conversation and negative revisions loom on the horizon," analyst Keith Weiss wrote in a Wednesday note.

"While the prospect around negative revisions, uncertainty around the macro environment, and angst surrounding the AI trade create a difficult setup for building ownership in shares today, we firmly believe Microsoft's overall positioning remains strong and that shares may be nearing a valuation floor which drives an attractive long-term risk-reward," the analyst said.

— Sean Conlon

Nasdaq nears bear market territory

The Nasdaq Composite was within striking distance from entering bear market territory in afternoon trading Wednesday, down more than 19% from its December record after falling more than 3% in the session.

The pullback comes after comments from Federal Reserve Chair Jerome Powell that Trump's tariffs could place the central bank "in a challenging scenario" and is "likely to move us further away from our goals."

The tech-heavy index previously entered a bear market earlier this month, closing more than 20% from its recent high just days after Trump's "reciprocal" tariffs announcement.

— Sean Conlon

Global growth to soften in 2025 on the back of Trump tariff developments, Citi estimates

Growth projections in the global economy are heading lower following Trump's tariff plans, according to Citi.

Analyst Nathan Sheets projects global growth this year will soften to 2.1%. That is down from just below 3% in 2024 and 0.5 percentage points weaker than in March, with Sheets noting lower projections for several countries such as the U.S., Canada, Japan, China, Mexico, India and Korea, among others.

In 2026, global growth is expected to rebound only slightly to 2.3%, he estimates, saying that he anticipates the tariff effects will continue to linger. That estimate is 0.3 percentage points less than last month.

"U.S. tariff rates have risen to historically high levels, and this is creating challenging headwinds for the global economy," the analyst wrote Wednesday. "In addition to the direct effects of the tariffs, these headwinds include amplified policy uncertainty, sharply declining sentiment, and adverse wealth effects."

"Given the trajectory of recent developments, the risks to our forecast are strongly skewed to the downside," Sheets continued.

— Sean Conlon

Stocks fall to session lows following Powell comments

Stocks sank to session lows in Wednesday afternoon trading after Federal Reserve Chair Jerome Powell said tariffs could create difficulties for the central bank.

The Dow traded down more than 400 points. The S&P 500 and Nasdaq Composite slid more than 1% and 2%, respectively.

— Alex Harring

Stocks making the biggest midday moves: Nvidia, ASML and more

These are the stocks moving the most in midday trading:

• Nvidia — Shares tumbled more than 7% after Nvidia said it will record a $5.5 billion charge tied to exporting H20 graphics processing units to China, along with other destinations.
• ASML — Shares of the Dutch semiconductor equipment firm lost 5% after ASML missed order expectations and warned of greater demand uncertainty from China tariff restrictions.
• Advanced Micro Devices — The semiconductor stock declined 7% after the company said it expects that the latest U.S. export restrictions could result in charges of around $800 million.

Read the full list of stocks moving here.

— Lisa Kailai Han

Small caps outperform this week

While small-cap stocks have not been able to avoid Wednesday's market slide, the group is still bucking the downturn this week.

Though the Russell 2000 slid 0.6% in the session, the index is up about 0.6% on the week. By comparison, the S&P 500 has dropped 0.6% week to date following Wednesday's drop of more than 1%.

The U.S. stock market will be dark on Friday in observance of the Good Friday holiday.

— Alex Harring

Cleveland Fed's Hammack sees possible need to cut 'quickly' of growth slides

Cleveland Federal Reserve President Beth Hammack said Wednesday the central bank could be pushed into aggressive action on interest rates should economic growth slow sharply.

"If the economy should falter and inflation decline, then it may be appropriate to ease policy by lowering the federal funds rate from its current level of 4-1/4 to 4-1/2 percent, perhaps even quickly," Hammack said in remarks prepared for a speech in Columbus, Ohio.

However, the central bank official said given current conditions, including a high level of uncertainty about trade policy, "there is a strong case to hold monetary policy steady in order to balance the risks coming from further elevated inflation and a slowing labor market. When clarity is hard to come by, waiting for additional data will help inform the path ahead."

Hammack does not vote this year on the rate-setting Federal Open Market Committee but will get a vote in 2026.

— Jeff Cox

Oppenheimer initiates outperform rating on Reddit

Social platform Reddit could be positioned for some big gains ahead, according to Oppenheimer.

The firm initiated coverage on the stock with an outperform rating on Wednesday, with its updated price target calling for more than 29% upside from Tuesday's closing price.

"We believe Reddit will continue driving advertiser demand as it creates products around its highly targeted 1P data and subreddits," analyst Jason Helfstein wrote. "Additionally, we see a symbiotic relationship between Reddit and Google, especially with GOOGL struggling to compete in consumer AI."

Shares have come under significant pressure in recent months, lagging the broader market with a fall of nearly 25% over the past month and almost 45% over the past three. Reddit also sits more than 58% below its 52-week high.

— Sean Conlon

Dow sidesteps some of Wednesday's drawdown

The Dow was able to curb losses on Wednesday, due in part to rallies in Travelers and UnitedHealth Group.

The blue-chip index shed 0.4% in midday trading. By comparison, the broad S&P 500 lost more than 1%.

Travelers buoyed the Dow, rallying more than 3% after earnings per share came in far ahead of analysts' expectations. UnitedHealth was another notable outperformer, with shares rising ahead of the insurer's earnings report slated for Thursday.

— Alex Harring

WTO says global trade outlook has 'deteriorated sharply' due to Trump's tariffs

The World Trade Organization, or WTO, on Wednesday said the outlook for global trade has "deteriorated sharply" due to Trump's slate of tariffs.

"The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty," the WTO said in its most recent Global Trade Outlook and Statistics report.

— Brian Evans

It will be a 'challenge' for smaller SEC to regulate markets, Gensler says

Former U.S. Securities and Exchange Commission Chair Gary Gensler told CNBC's "Squawk Box" on Wednesday that it would be a "challenge" to regulate the market with fewer workers at his former agency.

"The market, just inevitably when the agency is 20, 25% smaller, is going to be less policed, less overseen for fraud, manipulation, insider trading and things like that. And I think corporate issuers will get their questions answered a lot slower," Gensler said.

The Trump administration and the so-called Department of Government Efficiency are working to reduce headcount at many different government regulators, including the SEC and the Internal Revenue Service. Bloomberg News reported last month that about 500 SEC staffers had agreed to take a buyout offer.

— Jesse Pound

Stocks open lower

Stocks kicked off Wednesday's trading day in the red.

The S&P 500 and Nasdaq Composite slid 1.1% and 1.9%, respectively. The Dow slipped 0.4%.

— Alex Harring

Stocks making the biggest moves premarket

Check out some of the companies making headlines in premarket trading:

• Nvidia — Shares slipped more than 6% after the chipmaker said it will take a quarterly $5.5 billion charge tied to exporting H20 graphics processing units to China, as well as other destinations. Nvidia said in a filing that the U.S. government informed the company it would require a license to export the chips to China and several other countries.
• J.B. Hunt Transport Services — The transportation stock pulled back 6% despite beating analysts' estimates on the top and bottom lines in the first quarter. However, J.B. Hunt reported a 1% drop in revenue and operating income year over year.
• United Airlines — The travel stock jumped more than 7% after United's first-quarter results topped analysts' expectations. The company earned an adjusted 91 cents per share, beating the 76 cents per share expected by Wall Street, according to LSEG. United also gave two full-year outlooks and called the economy "impossible to predict."

Read the full list here.

— Brian Evans

United Airlines climbs after first-quarter earnings beat

Shares of United Airlines rose 7% in premarket trading after first-quarter earnings topped expectations.

Adjusted earnings came in at 91 cents per share, above the 76 cents expected by Wall Street, according to LSEG. On a nonadjusted basis, United Airlines generated $387 million in profit, a positive swing from the loss of $124 million a year ago.

However, the airline's guidance showed the cloudy picture facing air travel. United Airlines gave two full-year outlooks, maintaining its previous guidance of $11.50 to $13.50 in adjusted earnings per share, while also saying that could decline to a range of $7 to $9 per share in the event of a recession.

— Jesse Pound

Retail sales data comes in stronger than expected

Retail sales increased 1.4% in March, according to advanced data released Wednesday from the Commerce Department. That is higher than the 1.4% consensus forecast from economists polled by Dow Jones.

— Alex Harring

Japan will negotiate with U.S., Trump says

Trump said Japan would negotiate tariffs with the U.S. on Wednesday.

Trump said that he, along with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, would be present for discussions.

Trump posted the following on Truth Social on Wednesday morning: "Japan is coming in today to negotiate Tariffs, the cost of military support, and 'TRADE FAIRNESS.' I will attend the meeting, along with Treasury & Commerce Secretaries. Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!"

— Alex Harring

Travelers pops as earnings per share blow past expectations

Shares of Travelers Companies rose more than 2% in Wednesday premarket trading after the insurer recorded much better earnings than Wall Street projected.

Travelers earned $1.91 per share, excluding items, in the first quarter, while analysts polled by LSEG forecast 78 cents per share. That pulled attention from the company's $10.52 billion in quarterly revenue, a smaller figure than the Street's consensus forecast of $10.83 billion.

— Alex Harring

Europe stocks open lower

Europe's regional Stoxx 600 index slipped 1% in early deals, snapping a short winning run.

The index jumped 2.69% on Monday and 1.63% on Tuesday, beginning to shake off sharp losses from the previous weeks in which U.S. tariff uncertainty sparked market chaos.

Germany's DAX and France's CAC 40 were both down around 1% at 8:30 a.m. in London, while the U.K.'s FTSE 100 was down 0.44%.

— Jenni Reid

ASML posts lower-than-expected net bookings in first quarter

Dutch semiconductor equipment firm ASML on Wednesday missed on net bookings expectations, suggesting a potential slowdown in demand for its critical chipmaking machines.

ASML reported net bookings of 3.94 billion euros, or $4.47 billion, for the first quarter, versus a Reuters reported forecast of 4.89 billion euros.

Global chip stocks have been fragile over the past two weeks amid worries about how U.S. President Donald Trump's tariff plans will affect the semiconductor supply chain.

Read the full story here.

— Ryan Browne

Stocks making the biggest moves after the bell: United Airlines, J.B. Hunt and more

These are the stocks moving the most in extended-hours trading:

• United Airlines — The airline popped nearly 7% after posting first-quarter adjusted earnings of 91 cents per share, while analysts polled by LSEG had expected 76 cents per share.
• J.B. Hunt Transport Services — The transportation giant fell 6% despite posting a first-quarter beat on the top and bottom lines. 
• Interactive Brokers — Shares slipped 8% after the electronic trading platform reported first-quarter earnings of $1.88 per share, excluding items, while analysts had expected earnings of $1.92 per share, per LSEG.

Read the full list of stocks moving here.

— Lisa Kailai Han

Nvidia stock slides 6% after company says it will record $5.5 billion charge

Shares of Nvidia shed 6% Tuesday evening after the company said it will record a $5.5 billion charge tied to exporting H20 graphics processing units to China, among other destinations.

The company said in a filing that the U.S. government told Nvidia it would require a license to export the chips to several countries, including China. The filing is the strongest indication thus far that Nvidia's overall growth could be squeezed by increasing export restrictions on its chips.

The H20 chip was specially designed by Nvidia to sell to China in compliance with U.S. export restrictions, and generated the company between an estimated $12 billion and $15 billion last year.

— Lisa Kailai Han, Kif Leswing, Jordan Novet

U.S. stock futures slide

Stock futures slipped Tuesday night.

Dow futures slid around 0.5% shortly after 6 p.m. ET, while S&P 500 and Nasdaq 100 futures respectively dipped 0.9% and 1.3%.

— Lisa Kailai Han