U.S. stock index futures declined early Wednesday, dragged down by tech sector weakness after AI leader Nvidia warned of a significant earnings impact due to stricter U.S. export controls to China.

At 05:30 ET (09:30 GMT),

• Dow Jones Futures were down 25 points (0.1%),
• S&P 500 Futures dropped 35 points (0.6%),
• Nasdaq 100 Futures slumped 240 points (1.3%).

Wall Street closed lower on Tuesday after early gains from upbeat bank earnings fizzled, weighed by lingering uncertainty around the White House’s trade policy.

Nvidia Tumbles on $5.5 Billion Hit From Export Restrictions

Nvidia (NVDA) fell in premarket trading after revealing it expects a $5.5 billion charge due to a U.S. Commerce Department decision restricting exports of its H20 AI chip to China — a critical market.

The H20 is currently the only AI chip Nvidia can legally sell in China under prior U.S. restrictions aimed at curbing Beijing’s access to advanced AI technologies.

The announcement rattled the broader chip and tech sector. Shares of Intel (INTC), AMD (AMD), Broadcom (AVGO), and key Nvidia supplier TSMC (TSM) all declined. Apple (AAPL) and Tesla (TSLA) also traded lower, as fears of further escalation in the U.S.-China trade war weighed on tech supply chain sentiment.

More Earnings on Tap

Wednesday’s earnings lineup includes reports from:

• Travelers Companies (NYSE: TRV)
• U.S. Bancorp (NYSE: USB)
• Abbott Laboratories (NYSE: ABT)
• Citizens Financial Group (NYSE: CFG)

Retail Sales and Powell’s Remarks in Focus

March retail sales data, due later today, could offer insight into U.S. consumer behavior ahead of President Trump’s sweeping — and partially delayed — tariff announcement.

“March retail sales should be strong, as anecdotal evidence suggests consumers rushed to make big-ticket purchases ahead of tariffs,” noted ING analysts led by Michiel Tukker.

Markets are also eyeing a speech from Federal Reserve Chair Jerome Powell. Investors will be looking for clues on the Fed’s economic outlook amid growing trade uncertainty. Earlier this month, Powell stated that there was a lot of “waiting and seeing” by policymakers, calling it the right approach during a time of elevated unpredictability.

Oil Prices Edge Higher Amid Fragile Sentiment

Crude prices rose slightly, though concerns over global demand persist due to trade-related risks.

As of 05:30 ET:

• Brent crude gained 1.1% to $65.36 per barrel
• WTI crude climbed 1.1% to $61.99 per barrel

The International Energy Agency (IEA) joined OPEC in lowering its global oil demand outlook, citing the negative impact of Trump’s tariffs and retaliatory measures. The IEA now expects demand to grow by just 730,000 barrels per day in 2025 — down sharply from the previous forecast of 1.03 million and the weakest growth rate in five years.r day in 2025 — down sharply from the previous forecast of 1.03 million and the weakest growth rate in five years.