The S&P 500 (SPX) dipped on Wednesday as investors learned about the effects of a chip export ban to China. This ban doesn’t allow for advanced AI chips from U.S. companies to be sold to companies and other entities in China.
Nvidia (NVDA) revealed the negative effects of this chip export ban today when it said it would suffer a $5.5 billion charge related to it. This upset investors and caused NVDA stock to drop 6.79% as of this writing.
The S&P 500 isn’t performing well on the chip export ban, with the index down 1.07% as of this writing. Investors will note that the SPX has dropped 10.01% over the last three months and has fallen 8.25% year-to-date.
What Stocks Are Pulling the S&P 500 Index Lower Today?
Turning to the S&P 500 heatmap, traders will see which stocks are doing the most damage to the index today. As noted, NVDA has fallen significantly on Wednesday. That’s triggered similar falls among its tech sector siblings, such as Apple (AAPL), Microsoft (MSFT), Broadcom (AVGO), Intel (INTC), Advanced Micro Devices (AMD), and others.
Sectors that are performing well on Wednesday include energy, healthcare, utilities, real estate, and basic materials. Consumer defensive also isn’t doing bad, but Walmart (WMT) has dropped 1.94% as of this writing.
How to Invest In the S&P 500
Investors have a few options available for investing in the S&P 500 index. One approach is buying shares listed on it. This might lead some to purchase falling shares in hopes of a rebound, while others will buy rallying stocks looking for further gains.
Another option is investing in an exchange-traded fund (ETF) that tracks the S&P 500 index. One popular choice traders might consider is the SPDR S&P 500 ETF Trust (SPY), though there are many ETF options available.
