US stocks fall after the White House considers new curbs on China's access to AI chips

• US stocks moved lower on Wednesday after the Biden administration considered new restrictions on China's access to AI chips.
• The news sent semiconductor companies lower, with shares of Nvidia falling more than 3%.
• President Biden is scheduled to give a speech about the economy today and will say that he thinks the US economy can avoid a recession.

US stocks edged lower on Wednesday after news broke that the Biden administration is considering implementing new curbs on China's access to artificial intelligence chips.

The news sent semiconductor stocks lower, with shares of Nvidia falling more than 3%. The White House has already implemented curbs on what kind of chips can be sold to China. For example, Nvidia is unable to sell China its most advanced H100 GPU chipset, and has instead had to sell the country less capable chips like the A100.

President Joe Biden is scheduled to give a speech in Chicago today that will talk up the economy and likely express his belief that the US can ultimately avoid a recession as the job market remains resilient and inflation continues to ease.

"It's [recession] been coming for 11 months, well guess what? I don't think it is going to come," Biden said during a fundraiser Tuesday night.

Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Wednesday:

• S&P 500: 4,365.20, down 0.31%
• Dow Jones Industrial Average: 33,819.49, down 0.32% (107.25 points)
• Nasdaq Composite: 13,529.31, down 0.19%

Here's what else is happening this morning:

• The Fed won't hit its 2% inflation target until 2025 and cutbacks in consumer spending suggests a recession is imminent, the CEO of Bank of America said.
• Apple stock continues to hit all-time highs and is just a stone throws away from reaching a $3 trillion valuation.
• Wedbush analyst Dan Ives said the onset of artificial intelligence represents the "fourth industrial revolution" and will see $1 trillion in investment.
• Two of the best performing stocks in the S&P 500 this year are cruise line companies Royal Caribbean and Carnival Corp.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil rose 0.30% to $67.90 per barrel. Brent crude, oil's international benchmark, jumped 0.18% to $72.39.
• Gold fell 0.37% to $1,916.60 per ounce.
• The yield on the 10-year Treasury fell 2 basis points to 3.74%.
• Bitcoin fell 1.69% to $30,180, while ether dropped 1.74% to $1,856.