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.


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 and

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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