CNBC Business News Update - Market Close: Stocks Sell Off, Nvidia Warning, Powell Hints Inflation May Be So High & Long No Rate Cuts Anytime Soon 4/16/25

Episode Date: April 16, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Thursday morning after an ugly Wednesday sell-off for stocks led by an Nvidia warning and Trump tariff concerns from the Fed chair that raised alarm among investors, the Dow plunging 699 points, almost 2 percent. Nvidia shares down almost 7 percent. The S&P 500 index was down 120 points, 2.25%. The Nasdaq down 516 points, more than 3%. We've become more accustomed of late to seeing outsize moves like this, which are so not

normal. CNBC's Scott Wapner. Nvidia shares plunged on the prospect that the government won't let it export its H-20 chips to China. But the market turned dramatically lower as the Fed chair, Jay Powell, was speaking. He warned of higher inflation from the Trump tariffs and inflation that might last a long time. Investors want interest rate cuts, but as long as inflation is high, Powell hinted the Fed might just have to wait. In this case you can look at the

car companies which their supply chains seem to be on track to be disrupted significantly and you would worry that that process will take some years and that the inflationary process might be extended. Fed Chair Jay Powell, here's CNBC's Bob Pisani. So here's the problem. If there are no imminent rate cuts, if he said applied worth standing pat, that's not what the market particularly wanted to hear.

The bottom line is, given that the tariffs may be around for a while, the earnings outlook does not support the current valuation. That's it in a nutshell. This is why growth stocks have been hit hard again today because it's hard to argue how are you going to have notable earnings growth in this kind of environment here. Meantime, U.S. Customs and Border Protection tells CNBC it's collected more than $500 million

under Trump's new tariffs, significantly less than President Trump's claim that the tariffs are generating $2 billion a day. Gold is at its highest since 2012, as investors flee to what they feel is a safe investment. Something is happening with gold. It is taking off, whether you want to say it's because of a declining dollar or uncertainty, but that's a new high today. And the gains on a daily basis are getting even more significant up $82 a day.

It just when gold breaks out like this, it looks like it's headed to 4,000. CNBC's Joe Kernan. Retail sales for March had their biggest gains in more than two years, but when you take out auto sales, the rest just came in okay. Americans dove in to buy pre-tariff new cars and would-be car buyers are now finding fewer and fewer new vehicles for sale on dealer lots. This is according to Cox Automotive. As Americans race to front run the tariffs, those who lost out scooped up used vehicles before those are in short supply. There's concern that there's not going to be a lot

to buy at all in terms of vehicles once automakers and dealers sell out of their inventories. Chinese retailer Taimu slashing U.S. ad spending and it's raising prices because of the Trump tariffs. Taimu and Chinese fast fashion retailer Shien exploded onto the discount scene in the U.S. over the past few years. Now they stand to suffer. On Thursday's watch list, we get earnings from American Express, Charles Schwab, home builder D.R. Horton, United Health and Netflix. We find out how many people applied for unemployment benefits last week. And it's the final day of the NHL regular season.

Jessica Ettinger, CNBC. Welcome to CNBC Plus. Market destination. CNBC.