The stock market had been running higher since making its post-Liberation Day lows on April 8. The rally, however, took a big step backward, with the S&P 500 and Nasdaq Composite tumbling 2.2% and 3.1%,

Separate warnings by the chipmaking giant and the chairman of the Federal Reserve about the impact of White House policies contributed to another sell-off on Wall Street.

Nvidia is caught in the middle of an escalating trade war between the world’s two largest economies. Nvidia on Tuesday said it will take a $5.5 billion financial hit after Washington placed fresh restrictions on the export of its H20 artificial intelligence chips to China,