S&P 500, Nasdaq slide as China curb risk rattles techs

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%.

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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.

Live2 updates

Wed, July 17, 2024 at 7:36 AM MDT

Stocks slide at the open led by chips

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%.

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.

This led chipmakers with ASML (ASML) falling more than 8% and Nvidia (NVDA) sliding nearly 4%.
Wed, July 17, 2024 at 3:40 AM MDT
BofA fund manager survey takes the pulse of an election sweep…

The BofA monthly fund manager survey is out, and it’s the latest piece of Wall Street insight putting forward the potential for an election sweep in November.

Some of the key findings on this front:

77% think a sweep would lead to higher bond yields.

52% think a sweep would lead to a higher US dollar.

48% think a sweep would be positive for US stocks.