Key Takeaways

Major U.S. equities indexes tumbled Wednesday.

Federal Reserve Chair Jerome Powell told the Economic Club of Chicago that changes in U.S. trade policy could pressure growth and boost inflation . Noting declines in business and consumer sentiment, Powell suggested the Fed is poised to await more visibility on possible tariff impacts before modifying interest rates.

The S&P 500 ended the session 2.2% lower, while the Dow declined 1.7%. Tech sector underperformance weighed on the Nasdaq, which fell 3.1%.

Shares of J.B. Hunt Transport Services ( JBHT ) skidded 7.7%, falling the furthest of any S&P 500 stock, following the logistics company's earnings release. Although first-quarter sales and profits edged out expectations, executives noted that tariffs were weighing on demand as customers attempt to gauge the potential impact on their supply chains and overall businesses. J.B. Hunt stressed that it is evaluating options to reduce its costs as it navigates these challenges.

The top executive from marketing and corporate communications firm Omnicom ( OMC ) reaffirmed plans to move forward with the acquisition of advertising giant Interpublic Group ( IPG ), pushing back against claims that the deal could result in client losses. However, shares of both companies dropped more than 7% on Wednesday.

Semiconductor stocks dropped after chip giants Nvidia ( NVDA ) and Advanced Micro Devices ( AMD ) said they expect to take significant charges related to export restrictions imposed by the Trump administration. Nvidia anticipates a $5.5 billion hit in its fiscal first-quarter results. In comparison, AMD foresees a charge of up to $800 million. Reports said that Nvidia's H20, AMD's MI308, and other equivalent chips will need export licenses to be sold to Chinese firms. AMD shares plunged 7.4%, while Nvidia shares lost 6.9%.

Palantir Technologies ( PLTR ) shares declined 5.8% on Wednesday, reversing some of the strong gains notched this week after the data analytics firm struck a deal with the North Atlantic Treaty Organization (NATO) for the deployment of Palantir's artificial intelligence (AI) military system. Shares of other enterprise software providers also lost ground amid broad pressure in the tech sector following Powell's comments about tariffs and their possible inflationary impact.

Crude oil futures prices moved higher after the U.S. government announced sanctions on Chinese importers of oil from Iran, increasing concerns about global supply. The uncertain outlook for the global economy has pressured the commodity's price this month, and the bounce back helped lift oil and gas stocks. Shares of exploration and production company APA Corp. ( APA ) led the way, with a gain of 3.2%, marking Wednesday's top performance in the S&P 500.

Abbott Laboratories ( ABT ) shares jumped 2.8% after the maker of medical devices and other health care products reported better-than-expected first-quarter sales and profits . The company also reaffirmed its full-year earnings per share (EPS) guidance. It announced plans to invest $500 million in two manufacturing and research and development (R&D) facilities in Texas and Illinois that are set to open this year.

Gold prices surged to another record high as the precious metal's safe-haven appeal remains solid in the tense geopolitical environment. Shares of Newmont ( NEM ), the world's largest gold producer, advanced 2.6%.

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