Semiconductor Sector Drags Market Lower

Hello traders everywhere. Semiconductor stocks fell after the ruling that Qualcomm used its dominant position to exact excessive licensing fees, a decision that could shake up the broader smartphone industry. Qualcomm (QCOM) fell -12%, while other chip stocks also dropped which in-turn has pulled the overall market as we head into afternoon trading.

Today's declines followed a Tuesday rebound for chip stocks after the White House granted temporary exemptions to an export blacklist against Huawei Technologies, potentially easing U.S.-China tensions as the two sides seek to get trade talks back on track. Some analysts expect trade-related swings to continue until investors get more clarity on escalating tariff threats by both sides.

Semiconductor

On the trade war front, Treasury Secretary Steven Mnuchin told CNBC's Ylan Mui that a trip to Beijing to retake trade negotiations has not been scheduled yet. This lowered hope of a speedy resolution to the U.S.- China trade war.

President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25% earlier this month. China immediately responded by upping the tariffs on $60 billion of U.S. goods to as high as 25%.

Key Levels To Watch This Week:

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

One thought on “Semiconductor Sector Drags Market Lower

  1. Trade War continues . My opinion is that China is challenging the world for dominants , especially the USA .
    Donald Trump is doing a great job , under pressure . Maybe he is the best president I have seen in a long time .
    Lets try and make America great again , the free trade agreements hurt America , Donald trump is right .

    China , I believe china is going to give in to USA demands , as it will be world war 3 if they don't . The USA is not going to give up power .
    The markets selloff continues , it was going to happen whether trade war or not . Markets can not trend up continuously forever they have to catch their breath now and then .

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