Global markets are again under pressure following an escalation in U.S.–China trade tensions, with investors fleeing to havens and tech stocks taking a beating.

Gold surged over 2% on Wednesday to top $3,300 per ounce and set a new record high. The dollar weakened further, and Nasdaq futures pointed to a rough day ahead for Wall Street.

On Tuesday, the White House announced tariffs of up to 245% on Chinese imports in response to China’s retaliatory measures and bans on exports of key strategic materials, including rare earth elements, gallium and germanium that are used the production of high-speed computer chips. The move follows an Executive Order launching an investigation into national security risks tied to U.S. dependence on foreign critical minerals.

Markets reacted swiftly. The Dollar Index (DXY) fell back below 100, signaling reduced investor confidence in the U.S. currency. Meanwhile, the euro strengthened to $1.13 and the yen to 142 per dollar.

Equities struggled. Nasdaq futures dropped more than 2%, with tech stocks particularly hard hit. Nvidia (NVDA) shares fell 7% pre-market after the company disclosed that new U.S. export controls on AI chips to China would cost it $5.5 billion in lost revenue. The announcement raised concerns of broader earnings hits across the semiconductor industry , which relies heavily on Chinese demand.

Bitcoin (BTC) dropped slightly to $83,000 following the news, reflecting its stronger correlation with U.S. tech stocks rather than acting as a safe-haven asset like gold.

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