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US equities pulled back Monday, easing off last week’s gains as geopolitical tensions, a looming rate decision from the Fed and pending inflation data come to a head. 

The S&P 500 and Nasdaq Composite indexes dipped after Monday’s open, each trading 0.4% lower at 2:15 pm ET. 

The share price of Nvidia — Big Tech’s darling that has surged almost 200% this year — slipped on Monday on news that China opened a probe into the chipmaker on suspicions of anti-monopoly law violations. The investigation comes days after President Joe Biden expanded limits on exports of semiconductors to China. This is part of an effort, the administration says, to limit China’s access to cutting-edge AI technology. 

China last week also banned exports of three rare minerals and imposed new sanctions on US defense firms and executives. It’s starting to look like a full-on supply chain war in the final weeks before President-elect Donald Trump takes office. 

After opting to respond with parallel tariffs against the US during Trump’s first term, the Chinese government appears to be taking a more aggressive approach this time around. Trade War 2 is going to be a much dirtier fight. 

Nvidia did not respond to Blockworks’s request for comment and has not made any public statements on the probe. Nvidia does have a less powerful version of its chips that it has made available to China in the wake of Biden’s policies. Shares were trading 2.4% lower Monday at 2:15 pm ET.

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