US equity indexes declined after a sharp sell-off in Nvidia (NVDA) weighed on risk sentiment.

The Nasdaq slumped 2.2% to 16,452.1, with the S&P 500 down 1.3% to 5,328.2 and the Dow Jones Industrial Average 0.6% lower at 40,149.3.

Technology sank 3.2% intraday, the steepest decliner. Consumer discretionary and communications services were among the worst performers. The energy sector led the gainers.

Nvidia (NVDA) said new US export restrictions require licenses for H20 chips to China and D5 countries, prompting a planned $5.5 billion charge for inventory and related commitments, CFRA, an independent research provider, told MT Newswires. This development contradicts recent media reports suggesting potential easing of restrictions following Nvidia Chief Executive Jensen Huang's meeting with President Donald Trump.

"While NVDA has historically adapted to export controls by developing China-specific products, we estimate that this development puts about 8%-10% of the company's revenue tied to China servers at risk," CFRA said, adding Nvidia has about 13% of total revenue exposure to China.

Nvidia and Advanced Micro Devices (AMD) will face new restrictions on the export of advanced microchips used for artificial intelligence applications to China, a US Commerce Department spokesperson told Reuters. .

Also weighing on technology bulls was ASML Holding's (ASML) results overnight. The company's shares slumped 5.5% intraday, the third-worst performer on the Nasdaq behind Nvidia and Advanced Micro Devices, after the company's fiscal Q1 net revenue and guidance for Q2 net sales missed analysts' expectations.

In economic news, the U.S. Census Bureau reported retail sales rose 1.4% in March from the prior month, compared with a 0.2% gain in February and ahead of the FactSet consensus estimate for an increase of 1.3%.

West Texas Intermediate crude oil futures jumped 1.8% to $62.48 a barrel.

Gold futures surged 3% to $3,338.11 per ounce, and their silver counterpart jumped 1.9% to $32.91.