Stock Market Today: World Stocks Slip on Report US Might Tighten Techno…see more

Stock Market Today: World Stocks Slip on Report US Might Tighten Technology Curbs on China
Stock Market Today: Wall Street’s Record-Breaking Rally Slams the Brakes on Worries About Trade
Wall Street’s record-setting rally ran into a wall as worries about worsening trade tensions with China slammed some of the market’s biggest winners of the year

NEW YORK (AP) — Wall Street’s record-setting rally ran into a wall Wednesday as worries about worsening trade tensions with China slammed some of the market’s biggest winners of the year.

The S&P 500 was 0.9% lower, a day after setting an all-time high for the 38th time this year. The Dow Jones Industrial Average was adding 72 points, or 0.2%, to its own record, while the Nasdaq composite was down 1.7%, as of 9:35 a.m. Eastern time.

Chip companies around the world tumbled to some of the sharpest losses after a report from Bloomberg News said President Joe Biden is considering the most severe trade restrictions available if companies like the Netherlands’ ASML and Japan’s Tokyo Electron continue to ship advanced semiconductor technology to China. The U.S. government has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit.

ASML saw its stock trading in the United States drop 9% even though it reported sales for the spring that came in at the high end of its forecasted range. Shares of Tokyo Electron, meanwhile, dropped 7.5% in Tokyo to cull its gain for the year to 32.2%.

Another major chip company, Taiwan Semiconductor Manufacturing Co., sank after former President Donald Trump criticized the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defense if it is attacked.

“Taiwan should pay us for defense,” Trump said according to a transcript of an interview published by Bloomberg. “Taiwan took our chip business from us, I mean, how stupid are we?” he said.

TSMC’s stock trading in the United States dropped 5.6%.

Reverberations reached chip stocks around the world, including big U.S. players that have been some of Wall Street’s biggest stars this year amid a frenzy around artificial-intelligence technology. Nvidia fell 4.4% after soaring 155.2% this year through the day before.