On Monday, US stock markets showed a serious drop caused by the complicated relations with China. The shares of high-tech companies suffered the most.
The restrictions that the States imposed on the Chinese manufacturer Huawei have become the main negative factor. Because of this, many companies were forced to suspend the supply of products.
Google has stopped Huawei’s access to Android support services. Also, limitations were imposed by the manufacturers of microchips. Companies such as Intel, Qualcomm and Broadcom have frozen the shipment of semiconductors from China.
As a result of the decisions taken, Intel’s shares have lost 3%, Qualcomm and Broadcom have fallen by 6%. Alphabet securities have fallen by 2%, while Apple shares have become cheaper by 3%.
On Tuesday, the US Ministry of Trade announced that Huawei would be given 90 days to buy all the components and necessary materials to ensure the normal functioning of smartphones.
The official order regarding this issue will appear on Wednesday.
During the trade, Tesla’s market value fell by almost 3%. The reason was the deterioration of forecasts regarding the company’s stock price because of the doubts about the prospects for the development.
Blue Apron Holdings (recipe and ingredient delivery service) has lost more than 8% of the cost. In order to increase the price of shares and raise their liquidity, the company is going to conduct a reverse split.
Sprint Corporation shares rose by 19% after the news that Ajit Pai, Chairman of the Federal Communications Commission, recommended approval of the deal between Sprint and T-Mobile.
The shares of T-Mobile grew by almost 4%.
Dow Jones lost 84 points when the market closed and stopped at the level of 25680 points. S & P 500 fell by 19 points to the level of 2840 p. Nasdaq dropped by 114 points to 7702 points.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade