By Heard Editors

What Happened in Markets Wednesday

Stocks fell after Nvidia announced a big charge to earnings. Nvidia, which declined 7%, said late Tuesday it would take a $5.5 billion charge after the U.S. said it would need a license to export its less-powerful H20 processors to China and other countries. The Nasdaq fell 3.1%, the S&P 500 dropped 2.2%, and the Dow industrials lost 1.7%.

The rout worsened after Federal Reserve Chair Jerome Powell gave a cautious outlook for the U.S. economy. He warned of a "challenging scenario" in which large tariffs send consumer prices higher while weakening the economy, possibly forcing the central bank to choose between focusing on its goal of taming inflation or its mandate to press for a healthy labor market.

Hertz shares rose 56%. Activist investor Bill Ackman's Pershing Square Capital Management said it took a 4.1% stake in the car-rental company. Most of the day's gains occurred in the final minutes of trading.

J.B. Hunt Transport Services shares fell 8%. The trucking company, which is a bellwether for the shipping industry, reported disappointing quarterly results and issued financial guidance that fell short of analysts' expectations.

New data suggested U.S. consumers frontloaded purchases during March. The Commerce Department said retail sales rose 1.4% last month, as car buyers rushed to dealerships to get ahead of auto tariffs.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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(END) Dow Jones Newswires

April 16, 2025 17:28 ET (21:28 GMT)

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