As U.S.-China trade tensions escalate, gold prices surged over 2%, breaking the $3,300 mark and setting a record high. In contrast, tech stock futures plummeted, particularly affecting Nasdaq futures which fell over 2%. This downturn was largely due to new tariffs of up to 245% imposed by the U.S. on Chinese imports following China's retaliatory actions and export bans on critical materials needed for tech production. Chipmaker Nvidia warned of a significant $5.5 billion revenue loss due to these new U.S. export controls, causing its stock to drop 7% in pre-market trading. Meanwhile, the dollar weakened, reflected in the fall of the Dollar Index (DXY) below 100, while the euro and yen gained strength against the dollar. The overall market sentiment shifted, with investors seeking safety in gold rather than tech stocks, impacting assets like Bitcoin, which also saw a slight decline to $83,000 despite its typical correlation with tech stocks.

Source 🔗