Wall Street meltdown: Nvidia, AMD, Bunzl lead rout as tariffs and Fed crush sentiment

What triggered the sharp sell-off in US stocks on April 16, 2025?

US equity markets endured a sweeping downturn on April 16, 2025, with investors offloading risk assets across technology, logistics, advertising, and financial sectors. The sell-off came amid growing unease over escalating trade hostilities between the United States and China, newly enforced chip export restrictions on AI semiconductors, and cautious messaging from the Federal Reserve on the trajectory of interest rates.

Broader macroeconomic sentiment took a further hit from falling global trade forecasts and bearish investor positioning. The Nasdaq Composite closed down by over 3%, while the S&P 500 and Dow Jones Industrial Average recorded losses of 2.2% and 1.7% respectively. The breadth and depth of the losses pointed to systemic anxiety over geopolitics, inflation risk, and tightening monetary policy.

Which stocks were the biggest losers on April 16, and what factors drove their decline?

The most significant single-session decline came from Bunzl plc (BZLFY), whose American depositary receipts plunged 25.15% to close at $15.30. The selloff came despite relatively muted company-specific news, though analysts suggested that concerns about contracting margins and exposure to global supply chain costs contributed to the loss. Bunzl’s business model, focused on distribution and logistics services, is particularly sensitive to inflationary pressures and input cost volatility.

Kingsoft Cloud Holdings Limited (KC) fell 16.82% to $10.98 as investors reconsidered the valuation of Chinese cloud and data infrastructure providers amid persistent regulatory risk and trade decoupling concerns. The company’s reliance on cross-border tech services made it vulnerable to any expansion of U.S. export controls or domestic Chinese regulatory crackdowns.

Interactive Brokers Group Inc. (IBKR) dropped 8.95% to $157.90. Despite strong fundamentals, the online brokerage was caught in a wave of risk-off sentiment affecting financial platforms. Investors appear increasingly worried about declining trading volumes in a high-interest rate environment and rising compliance costs tied to cross-border financial flows.

WeRide Inc. (WRD) lost 8.77% to $8.63. The autonomous vehicle startup has been under pressure due to delays in regulatory approval for self-driving technologies in both China and the U.S., further compounded by geopolitical tensions that have complicated capital and supply chain access.

Hims & Hers Health, Inc. (HIMS) fell 8.52% to $26.95. The online telehealth firm, while having gained significantly earlier in the year, has faced investor skepticism about its long-term profitability, especially in an environment of tighter consumer discretionary spending.

How did technology and semiconductor stocks react to AI chip export curbs?

Technology stocks bore the brunt of the downturn following heightened restrictions on AI chip exports to China. This policy development had immediate and severe implications for major semiconductor manufacturers.

Advanced Micro Devices Inc. (AMD) declined 7.35% to $88.29, hit by speculation over a projected $800 million write-down tied to blocked AI chip exports. The company’s H100 rivals, including its MI300 series, have significant demand in China’s cloud and AI ecosystems. Restrictions on these products posed direct revenue threats.

NVIDIA Corporation (NVDA) slid 6.87% to $104.49 after disclosing that it may take a $5.5 billion charge linked to halted shipments of its H20 chips to Chinese data center customers. The move not only affects near-term revenue but also dents NVIDIA’s strategic lead in global AI infrastructure markets.

ASML Holding N.V. (ASML) dropped 7.06% to $634.93. The Dutch photolithography specialist cited weakening demand visibility from Chinese customers and broader tariff-related risk in its most recent filings. ASML remains a critical link in the global semiconductor fabrication supply chain, and any disruption in high-NA EUV system demand could ripple across the chip ecosystem.

Nova Ltd. (NVMI) and Entegris Inc. (ENTG) both registered declines of over 6%. These companies, involved in advanced semiconductor metrology and cleanroom technologies, respectively, face headwinds from reduced capital spending by foundries and integrated device manufacturers responding to uncertain demand from Chinese clients.

Which sectors outside tech also felt the pressure?

Transportation, advertising, and consumer finance also saw pronounced weakness on April 16.

J.B. Hunt Transport Services Inc. (JBHT) sank 7.68% to $124.73. Analysts attributed this to falling freight rates, declining spot demand, and operational cost inflation. The company’s cross-border logistics operations may also face indirect risks from tariff escalation and global trade volatility.

Robinhood Markets Inc. (HOOD) fell 7.76% to $40.66, continuing its volatile trajectory. As retail trading participation cools in a higher rate environment, Robinhood’s transaction-based revenue faces pressure. The company’s fintech model also contends with mounting scrutiny around payment-for-order-flow and order routing practices.

The Interpublic Group of Companies Inc. (IPG) and Omnicom Group Inc. (OMC) declined by 7.44% and 7.28%, respectively. The advertising giants are increasingly vulnerable to budget pullbacks by clients wary of economic uncertainty. Historically, ad spend has been one of the first casualties in corporate cost-cutting cycles.

Corcept Therapeutics Inc. (CORT) was down 7.17% to $64.60. Although the company has performed well over the past year, it may now face skepticism over the pricing durability of its niche hormonal therapies in a potentially more regulated U.S. pharmaceutical environment.

How did monetary policy signals add to market volatility?

Federal Reserve Chair Jerome Powell’s remarks on April 16 were closely watched by markets, with the central bank signaling that rate cuts would remain off the table for the foreseeable future. Powell acknowledged the inflationary risks tied to the unfolding trade conflict and indicated that the Fed would maintain its current tightening bias if inflation did not cool.

These comments deepened concerns about stagflation, especially given recent softness in industrial production and consumer spending data. Investors increasingly worry that prolonged high interest rates could intersect with declining corporate earnings, creating a negative feedback loop for equities.

Historically, similar periods of monetary tightening amid trade-related inflation—such as in the late 1970s—have triggered volatile or sideways equity markets, punctuated by brief risk rallies and sharp drawdowns. Current conditions appear to echo that dynamic, with cash and defensive sectors outperforming speculative growth names.

What broader macroeconomic signals amplified the risk-off mood?

The World Trade Organization recently downgraded its 2025 global trade growth forecast from 2.7% to just 0.2%, citing geopolitical frictions, tariff proliferation, and protectionist industrial policies. This sentiment was echoed in a Bank of America Global Fund Manager Survey, where 80% of respondents cited the trade war as the biggest tail risk for financial markets.

Investor positioning has reflected this caution, with rotation into short-duration Treasuries, gold, and defensive sectors such as utilities and healthcare. Equity volatility indicators also spiked during the session, with the CBOE Volatility Index (VIX) crossing 25 intraday, its highest level in over three months.

What are the implications for market direction and investor strategy?

The widespread sell-off on April 16 underscored the fragility of market sentiment in the face of overlapping trade, technology, and policy risks. While the decline affected both cyclical and growth stocks, the steepest losses came from companies with high valuations, China exposure, or dependence on discretionary consumer or advertising spend.

With the Federal Reserve maintaining a hawkish tone, and the trade dispute between the U.S. and China escalating, near-term upside for equities appears limited. Investors may remain on the sidelines until clarity emerges around Q2 corporate earnings, forward guidance, and diplomatic negotiations on technology exports.

As institutional fund managers reassess sector allocations, defensively positioned firms with strong cash flows and limited international exposure may attract increased interest. At the same time, high-growth names with stretched valuations and geopolitical sensitivity will likely face continued valuation compression.