US stocks plummeted Wednesday, with the Dow falling 700 points (1.73%), S&P 500 down 2.24%, and Nasdaq dropping 3.07%. Federal Reserve Chair Jerome Powell warned that President Trump's tariffs are unprecedented and highly uncertain, leading to higher inflation and slower growth. Nvidia took a $5.5 billion hit due to US export restrictions on AI chips to China, exacerbating US-China trade tensions. Investors are anxious about the Trump administration's fluctuating trade policies, impacting market sentiment and causing a surge in gold prices. Major banks reported strong earnings but expressed concerns about economic uncertainty.

Prepared by Christopher Adams and reviewed by editorial team.