Tech Stocks Tumble Amid China Trade Worries

The Nasdaq fell nearly 2% as major tech and chip stocks faced pressure from potential U.S. trade restrictions on exporting advanced semiconductor technology to China. This led to significant drops in companies like Nvidia, ASML, and Taiwan Semiconductor Manufacturing. Meanwhile, Johnson & Johnson saw gains after strong drug sales.

Devdiscourse News Desk

Updated: 17-07-2024 19:50 IST | Created: 17-07-2024 19:50 IST

On Wednesday, the Nasdaq slumped nearly 2% to a two-week low as chip and tech stocks faced pressure from impending U.S. trade curbs on semiconductor technology to China. A possible Biden Administration crackdown caused a 3.5% drop in the Philadelphia SE Semiconductor index.

Nvidia fell 4.3%, ASML's U.S.-listing slumped 9.2%, and Taiwan Semiconductor Manufacturing shed 6.4% after Donald Trump suggested Taiwan should pay for its U.S. defense. Other tech giants, including Apple, Microsoft, Meta Platforms, and Tesla also saw significant losses.

However, the Dow managed to hold its ground, driven by a 2.7% rise in Johnson & Johnson following strong quarterly sales. In contrast, Eli Lilly fell 2.3% due to promising early data from a rival's obesity drug. The overall market showed mixed results with investor unease reflected in Wall Street's 'fear gauge' hitting a six-week high.

(With inputs from agencies.)

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Johnson & Johnsontech stocksNasdaqNvidiaChina trademarket dropEli LillyASMLBiden Administrationsemiconductors

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