US cautioned allies it may use the harshest trade restrictions if corporations give Beijing advanced semiconductor technology.
flag of FBI and USA painted on cracked wall.
Photo credit: facebook
After a report indicated Washington was considering stronger export restrictions to China, Wall Street’s semiconductor index fell almost $480bn on Wednesday and headed for its worst session since 2022.
Selling in semiconductor stocks increased after Republican presidential nominee Donald Trump said Taiwan should pay for its defense.
Despite beating second-quarter earnings projections, US-listed ASML Holding shares fell 11%.
AI giant Nvidia plummeted about 7%, losing over $200 billion in market cap.
Its smaller peer AMD, fell 8%. Qualcomm, Micron, Broadcom, and Arm fell over 5%.
However, US chipmakers Intel, GlobalFoundries, and Texas Instruments rose 0.3 percent to 8.5 percent. Intel is building numerous plants in the nation, so some think geopolitical concerns could help it.
Due to unchanged fundamentals, market movements are likely short-lived. TECHnalysis Research chief analyst Bob O’Donnell said US limitations on shipments to China will undoubtedly rise, regardless of the election outcome, but they’ve been in place for a long.
Comment Template