Stocks sank Wednesday after computer chipmaker Nvidia announced it was recording a $5.5 billion charge to comply with a new Trump administration rule on tech-related exports.

Shares of Nvidia fell more than 5% soon after markets opened, causing the tech-heavy Nasdaq fell as much as 1.7%. The S&P 500 declined as much 1%. The Dow Jones Industrial Average fell as much as 0.4% or about 150 points.

Major companies typically record charges for one-time expenses or an expected reduction in earnings. The charge announced by Nvidia relates to a new Trump rule that applies to its H20 chips. Those chips were designed specifically to comply with Biden-era regulations for selling tech products to China. CNBC reported the H20 line generated an estimated $12 billion to $15 billion in revenue in 2024.

In a filing late Tuesday, Nvidia said Trump officials are now requiring a new export license for the H20s to address “the risk that [the chips] may be used in, or diverted to, a supercomputer in China.” Nvidia said the administration officials indicating the rule would be in effect “for the indefinite future.”

Nvidia, now worth nearly $3 trillion thanks to widespread adoption of its chips by firms looking to boost their artificial intelligence capabilities, has become a bellwether for the broader market.

But year to date, Nvidia shares have plunged some 23% as Trump’s trade war has come into focus. The decline has helped fuel a broader market sell off that has only accelerated following President Trump’s April 2 “Liberation Day” announcement that saw country-by-country tariffs proposed.

Since the Rose Garden event, the S&P 500 and Nasdaq are still down around 6% and the Dow is still lower by about 5%.