U.S. markets fell deep into the red on Wednesday, with chip stocks leading the retreat as U.S.-China trade tensions spooked investors. The tech-heavy Nasdaq was down sharply, off about 3.3% in afternoon trading.

The stock market had been running higher since making its post-Liberation Day lows on April 8. The rally, however, took a big step backward, with the S&P 500 and Nasdaq Composite tumbling 2.2% and 3.1%,

U.S. stocks fell Wednesday after Nvidia warned new restrictions on exports to China will chisel billions of dollars off its results, while companies around the world said President Donald Trump’s trade war is clouding forecasts for how they and the economy will do this year.