Dow Jones slides as Nvidia, AMD tumble on chip tariffs; Powell speech eyed

• Nvidia and AMD plunge over 6% after the US imposes export license restrictions; losses could exceed $6.3 billion combined.
• US launches rare minerals investigation, pressures global allies to block Chinese shipments.
• Strong retail sales offset by weak industrial output; Fed cut odds remain low ahead of Powell's 17:30 GMT speech.

 The Dow Jones Industrial Average (DJIA) registers minuscule losses in the mid-North American session as semiconductor-linked companies like Nvidia and AMD got hit by tariffs imposed by United States (US) President Donald Trump.  The DJIA is down 0.46% above 40,100 for the second consecutive day.

DJIA down 0.46% as US export curbs to China hit semiconductor stocks; risk sentiment weakens amid rare minerals probe

US equities tread water, particularly chipmakers Nvidia and AMD, as the US Government issued new export licensing requirements to send chips from the US to China. Hence, Nvidia and AMD plunged over 6% respectively. Reuters revealed that these measures will hit both companies.

"Nvidia said it faces $5.5 billion in charges after the restrictions, while AMD said it expects an $800 million hit," according to Reuters.

Risk appetite turned sour as the US launched a rare minerals investigation after China announced export controls. The US is trying to isolate China, asking more than 70 countries to disallow China from shipping goods through their countries.

On the data front, US Retail Sales exceeded estimates, while Industrial Production shrank by 0.3% MoM, more than the 0.2% expected by analysts, as revealed by the US Federal Reserve (Fed).

The data didn't move the needle regarding market pricing rate cuts by the Fed. According to CME's FedWatch Tool, traders see an 18% chance the Fed will ease rates by 25 basis points at its May meeting.

Ahead, traders are eyeing Fed Chair Jerome Powell's speech at 17:30 GMT, looking for cues about the path of interest rates.

Dow Jones price forecast

The Dow Jones is downward biased, though bulls have remained able to hold to gains above 40,100. Nevertheless, momentum seems to be favoring bears, which, if they push the DJIA below the latter, would exacerbate a drop to challenge the April 14 low of 39,877, ahead of the April 7 swing low of 36,480. On the other hand, a break above 40,500 opens the path to test the April 1 high at 40,909 and 41,000.