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17/07/24
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Wall Street Mixed on Tech Sector Slumping Due to Geopolitical Concerns
On Wednesday, stocks on Wall Street were mixed as heavyweight technology stocks saw a sustained pullback due to increased geopolitical tensions.
The NASDAQ Composite slumped 325 points, or 1.8%, S&P 500 dropped 50 points, or 0.9%, and the Dow Jones Industrial Average rose 60 points, or 0.1%.
On Wednesday, the main Wall Street indices traded lower as they retreated from record highs with the tech sector leading losses after a Bloomberg report that the Biden administration may decide to clamp down on companies that export key chipmaking equipment to China.
Geopolitical tensions were also raised as Republican presidential candidate Donald Trump stated that Taiwan should pay America for supplying defense equipment as it didn’t give the U.S. anything.
This resulted in Taiwan Semiconductor Manufacturing, the biggest contract chipmaker in the world and Taiwan’s biggest stock, to drop heavily in premarket trading.
Trump’s comments were made in a Bloomberg Businessweek interview that was published on Tuesday.
Despite a strong second quarter, ASML, the Dutch lithography equipment maker’s stock also slumped in Europe, with about half of its sales to China, underlining a hefty downside in the event of increased restrictions.
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