Following high charges from new US restrictions on semiconductor shipments to China, the most recent flashpoint in trade tensions between the world's two largest economies, Nasdaq futures led Wednesday's declines, and AI chip giant Nvidia fell.
After exports to China, a crucial market for one of its most well-known processors, were restricted, Nvidia said it faces $5.5 billion in charges.
Premarket trading saw a 6.4 percent decline in Nvidia shares and a 6.8 percent decline in AMD shares.
Other chip stocks also saw declines, with Broadcom down 3.9 percent and Micron Technology down four percent.
The latest effort by President Donald Trump's administration to prevent the sale of sophisticated chips to China is the export restrictions.
Nvidia's warning emphasized how businesses are affected by trade tensions and stoked concerns that domestic consumption and economic growth would be negatively impacted by the frequent changes in US trade policy. The prognosis for companies during earnings season has investors on edge.
All three of the main Wall Street indexes have lost ground this year as a result of the severe volatility caused by these concerns.
Wall Street's "fear gauge," the CBOE volatility index, increased 1.46 points to 31.58 after declining for the previous three days.
Trump also directed an investigation into possible increased duties on imports of all vital minerals.
According to CME's FedWatch, traders believe there is a 20 percent probability the Fed will lower rates by 25 basis points at its May meeting.
Retail sales for March, which are scheduled to be released at 8:30 a.m. ET, will also be closely examined for hints about how consumers are coping with uncertainties and growing inflation expectations.
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With many financial institutions scheduled to release their results prior to the opening of markets, corporate results are currently the main focus.