Tech stocks dive after report that Biden administration plans to crack down on China chipmakers
CNN
Tech shares slumped Wednesday as investors shed the behemoths that fueled Wall Street’s monster stock rally this year.
Tech shares slumped Wednesday as investors shed the behemoths that fueled Wall Street’s monster stock rally this year. The Nasdaq Composite index tumbled 2.7% and the S&P 500 lost 1.3%. The Dow rose 0.5%. Shares of tech heavyweight Nvidia (NVDA) slumped 6.2% and rival chipmaker Advanced Micro Devices (AMD) dropped by 7.8%. The selloff comes after a Tuesday report from Bloomberg that the Biden administration is mulling plans to impose more sanctions on Chinese tech firms and to heighten semiconductor trade restrictions between the US and China. The US Commerce Department did not immediately respond to CNN’s request for comment. Investors are also selling tech stocks after a cool inflation report last week and stronger-than-expected retail sales data on Tuesday pushed up bets for a rate cut in September. Wall Street is looking to beaten-down stocks that tend to perform better when borrowing costs are low.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.