US stocks pulled back from record highs on Wednesday, as techs came under dual pressure from worries about US export curbs on China and Donald Trump’s stance on Taiwan.
The Dow Jones Industrial Average (^DJI) fell about 0.1%, The S&P 500 (^GSPC) fell nearly 1%, while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1.6%.
Stocks are pulling back as concerns about risks to tech names eclipse the high hopes for interest-rate cuts that have fueled the rally in recent days. Those worries weighed on heavyweights whose AI-fueled gains have helped propel the S&P 500 to fresh record highs this year, with chipmaker Nvidia (NVDA) down about nearly 4% in early trading.
The Biden administration has told allies it’s looking at imposing tougher restrictions on companies still making advanced chip technology available to China despite existing export curbs, Bloomberg reported. Shares of ASML (ASML, ASML.AS), cited as a potential target, dropped over 8% after the Dutch chip gear maker posted solid quarterly earnings.
Meanwhile, the Republican nominee Trump questioned US defense support for Taiwan in a Bloomberg interview, suggesting the island claimed by China should pay for US protection. Chipmaker TSMC’s (TSM, 2330.TW) shares fell more than 6%, having erased close to $30 billion in market value in Taiwan as stocks there slipped.
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