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Chip Stocks Plummet on Trade Fears and Taiwan Comments
2024-07-18 23:55:08
Stocks

Chip Stocks Plummet on Trade Fears and Taiwan Comments

Chip stocks experienced a significant decline, losing $480 billion in value due to concerns over China trade tensions and recent comments made by former President Trump regarding Taiwan. The US is considering tightening export restrictions on advanced semiconductor technology to China, which has contributed to the decline in chip stocks.

Major companies such as ASML Holding, Nvidia, AMD, Qualcomm, Micron, Broadcom, and Arm saw their stocks drop by 5-11%. However, some US manufacturers like Intel, GlobalFoundries, and Texas Instruments benefited from the situation.

The world's largest contract chipmaker, TSMC, also experienced a 6% fall in stock price due to Trump's Taiwan defense comments. Overall, the chip industry is facing increased uncertainty and potential restrictions that could impact global markets.

Investors are closely monitoring the situation and its potential impact on the stock market and semiconductor sector.

Related news on that topic:

US Stocks Tumble as Tech Share Rebound Falters

US stocks experienced a significant downturn as the rebound in tech shares faltered. The decline was driven by new trade tensions with China, which caused major indexes to fall, with the energy sector being the only one to advance. The Dow Jones index led the decline, as volatility increased. In Europe, equity markets were mixed, while the European Central Bank kept key rates steady. President Biden announced plans to target companies supplying China with semiconductor technology, putting pressure on Tokyo Electron, ASML, and Taiwan's TSMC. Additionally, speculation about former President Trump's potential 2024 presidential run added to election anxiety. The tech sell-off also impacted Asian markets, with Hong Kong, Australia, South Korea, and Japan all experiencing declines. Despite the overall market decline, Nvidia, AMD, and other chip stocks attempted a rebound after the sell-off. Intel, in particular, saw gains due to its expanding chip fabrication business and the potential for increased domestic chip manufacturing capabilities in the US and Western allies.

Tech Rout Sparks Stock Market Decline Across Major Indices

Stock markets faced a significant downturn as the tech rout persisted, causing the Nasdaq, S&P, Dow, and Russell 2000 to plummet. TSMC reported strong earnings and an optimistic outlook, contrasting Nvidia and ASML's sharp declines. The US imposed export restrictions on China, amidst concerns about Biden's COVID-19 response and potential Fed rate cuts. Netflix's Q2 results disappointed, while labor market activity showed signs of cooling. Additionally, Wall Street experienced a tech-driven sell-off, impacting tech and semiconductor stocks, with smaller players like Carvana adjusting. Beyond the tech sector, Domino's missed expansion targets, and Warner Bros Discovery considers a spin-off to boost stock prices. Europe and Asia also witnessed stock losses, with a particular focus on tech underperformance and potential investment opportunities beyond the tech realm. The stock market slump extended to Bitcoin and altcoins, prompted by warnings of an AI bubble risk from Goldman's Covello and Bahnsen Group, and a Lucidworks survey revealing modest returns for AI-related investments, contributing to stock declines in major tech companies.

Read 3 more recent news on this topic

The press radar on this topic:

The Street
21. Juli 2024 um 18:42

Stock Market Today: Tech slumps on Trump Taiwan, Biden tariff risks TheStreet Daily Newsletter

Finance
Technology
Politics
Economy
U.S. equity futures slumped as investors reacted to Trump's comments on Taiwan, which rattled global markets. Semiconductor stocks like Taiwan Semiconductor (TSM) and ASML tumbled, while Nvidia (NVDA), AMD (AMD), and Micron (MU) were also marked lower. The tech slump pulled Nasdaq futures down, while the S&P 500 and Dow also indicated a decline at the open. Investors are concerned about potential changes to U.S. policy on Taiwan and the risk of enhanced tariffs on China-made goods under both T..
Al Jazeera
17. Juli 2024 um 19:40

Chip stocks shed $480bn on China trade fears, Trump’s Taiwan comments

Finance
Politics
Technology
Chip stocks shed $480bn on China trade fears, Trump's Taiwan comments. US mulling tighter curbs on exports of advanced semiconductor tech to China. Chip stocks plunge, with ASML Holding, Nvidia, AMD, Qualcomm, Micron, Broadcom, Arm down 5-11%. Intel, GlobalFoundries, Texas Instruments gain as US manufacturers. TSMC, world's largest contract chipmaker, falls 6% on Trump's Taiwan defense comments in Bloomberg Businessweek. Biden admin curbed exports of AI processors, denting Nvidia's China reven..
Yahoo Finance
18. Juli 2024 um 12:13

Dow Jones Futures: Nvidia, Chips Dive In Nasdaq's Worst Day Since 2022; Taiwan Semi Earnings Due | Investor's Business Daily

Finance
Technology
Dow Jones futures rose slightly, with Taiwan Semiconductor earnings due. The stock market saw mixed action, with the Nasdaq suffering its worst loss since December 2022. Chip stocks like ASML, Nvidia, Taiwan Semi, Broadcom, and Applied Materials led the decline, while Eli Lilly and Novo Nordisk also slumped. The Magnificent Seven tech giants - Microsoft, Google, Tesla, Apple, Meta, and Amazon - also saw losses. The Dow Jones Industrial Average rose, led by UnitedHealth and Goldman Sachs, while..
The Guardian
18. Juli 2024 um 15:26

UK wage growth slows; global chip stocks fall amid growing tensions between US, China and Taiwan – business live

Economy
Finance
Technology
Politics
UK wage growth slowed, but economists expect a September rate cut from the Bank of England. Global chip stocks tumbled, with ASML, Nvidia, TSMC, Arm, AMD, Marvell, Qualcomm, and Broadcom hit by reports of tighter US export restrictions under the foreign direct product rule. The tech-heavy Nasdaq and S&P 500 fell in response.
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