US stocks end lower, focus now on Nvidia results
STORY: U.S stocks finished lower Wednesday with the Dow, S&P 500 and Nasdaq all losing about half of one percent each.
Shares of chipmakers including Cadence Design Systems and Synopsys fell in late trading.
The Financial Times reported that the Trump administration has ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups.
Other chip companies are dealing with U.S. government controls on their work, too.
Nvidia said after the market close that it expects an $8 billion hit to sales from tighter U.S. curbs on exports of its AI chips to China, a key semiconductor market.
Nvidia did beat quarterly sales expectations and its shares, which closed down half of one percent in regular trading, were up after-hours.
Rob Haworth, senior investment strategy director with U.S. Bank Asset Management Group, says Nvidia's results are hugely important for the market.
"Nvidia's significance to the market is still fairly large. They're no longer the largest company in the S&P 500, but they really sit at the center of artificial intelligence demand and supply at this point and so I think that's going to have a significant impact around it on the companies around it, right, the ecosystem around it. Particularly, it will tell us a lot about how other companies are doing."
Meanwhile, Investors also assessed the minutes of the Federal Reserve's May meeting.
U.S. central bank officials acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment.
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