Breaking News: Biden’s Potential Restrictions on Chip Technology Suppliers Hits Market Hard – ASML Shares Tank 13%
In a surprising turn of events, Joe Biden’s administration is considering imposing severe restrictions on companies like Tokyo Electron and ASML Holding ASML for providing China with advanced chip technology. This news sent shockwaves through the market, with ASML shares plummeting nearly 13% and dragging down the Stoxx 50 index.
The repercussions of these potential restrictions were felt across the tech sector, with Tokyo Electron, Nvidia, Broadcom, and AMD all experiencing significant losses. Even Tesla saw a dip in its stock price, despite optimistic predictions about its future prospects.
The tech selloff also impacted small caps, with the Russell 2000 index dropping 1%. The Federal Reserve’s cautious comments added to the uncertainty, with the possibility of rate cuts looming on the horizon.
On the currency front, the US dollar index is facing weakness amid expectations of a Fed rate cut in September. Meanwhile, the British pound is gaining strength, fueled by stronger-than-expected CPI figures and a rise in services inflation.
Looking ahead, the Euro could face some headwinds if the ECB hints at rate cuts in September. Oil prices, on the other hand, are holding steady above key support levels, with Trump’s policies playing a pivotal role in shaping the future trajectory of the market.
In summary, Biden’s potential restrictions on chip technology suppliers have rattled the market, leading to widespread losses across various sectors. Investors should remain cautious as uncertainty looms, especially with the Fed’s rate cut expectations and geopolitical factors at play.