Semiconductors and tech stocks suffered a blow on Monday after US president Donald Trump threatened to impose 25 per cent tariffs on nearly all Chinese imports this week.
Mr Trump’s threat is viewed as driving pressure on Beijing to make concessions on trade ahead of what is considered to be a make-or-break round of negotiations scheduled to begin on Wednesday.
Tech investors are viewing the President’s remarks “with some clear trepidation this morning as this remains the biggest overhang on the market and specifically tech stocks such as Apple in the high stakes poker game around US/China trade talks,” said Dan Ives, an analyst at Wedbush.
The Philadelphia Semiconductor index, which tracks 30 companies that design, distribute and manufacture semiconductors, was down 2.4 per cent. Meanwhile, the S&P 500 semiconductors sub-industry index fell 2 per cent. Here’s how some of the largest tech and semiconductor names were faring:
- Apple shares were down 2 per cent to $207.85
- Advanced Micro Devices shares fell nearly 4 per cent to $27.15
- Intel shares fell 1 per cent to $50.95
- Shares in Broadcom were down nearly 2 per cent to $310.03
- Shares in Nvidia fell 3.3 per cent to $177.02
- Qualcomm shares were down 2.2 per cent to $87.32
Materials stocks also took a hit with the sector down 1.7 per cent — led by a 4 per cent drop in chemicals group DowDuPont to $33.56.
The tariff fears sideswiped markets and prompted a sell-off across sectors. Auto companies took a hit as GM shares were down 3 per cent to $37.74, Fiat Chrysler shares were off 3 per cent to $15.39 and Ford shares slid 1.3 per cent to $10.27.
US steel and aluminium stocks were also down for the count. US Steel shares fell 3 per cent to $16.37, Alcoa shares tumbled 4 per cent to $25.53 and AK Steel shares fell 2 per cent to $2.50.
Meanwhile, shares of US-listed Chinese stocks were also punished with Alibaba shares down more than 4 per cent to $186.71, Baidu shares declining 3 per cent to $162.17 and JD.com shares falling 6 per cent to $28.28.
Get alerts on Markets when a new story is published