Wall Street Declines on Trade Sanctions Fears: Chip and Tech Stocks Lead Fall

The stock market took a hit on Wednesday as the S&P 500 and Nasdaq declined, with major chip and tech stocks leading the fall. The cause? Worries about potential trade sanctions on companies giving China access to advanced semiconductor technology.

A report from news agency Bloomberg revealed that President Joe Biden is considering severe trade restrictions on companies like ASML from the Netherlands and Tokyo Electron from Japan if they continue to ship advanced semiconductor technology to China.

At the opening bell, the Dow Jones Industrial Average also fell, but later recovered slightly. Chip giant Nvidia saw a 4.3% drop, while ASML’s US-listed company slumped 9.2%. Other tech stocks such as Marvell Technology, Broadcom, Qualcomm, Micron Technology, Advanced Micro Devices, and Arm Holdings all fell over 5%. However, Intel managed to buck the trend and gained 3%.

In the midst of the tech industry turmoil, Johnson & Johnson stock rose 2.7% after reporting better than expected second quarter results. On the flip side, Spirit Airlines plummeted 8.2% after cutting its second quarter revenue outlook.

In other news, gold prices reached a record high as investors anticipated a Fed rate cut. Gold prices hit $2,469.80 per ounce, while US gold futures gained 0.3% to $2,474.80. On the commodities front, oil prices rose due to a decline in US oil stockpiles and a weaker dollar.

It was a tumultuous day on Wall Street, with investors keeping a close eye on trade tensions and market movements. Download The Mint News App for the latest updates on business and market news.