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Semiconductors at the center of tensions between China and the United States
The time of dreams
Stocks exposed to recent tech tensions between China and the United States reacted on Wednesday after markets closed on July 4.
On Tuesday, the Wall Street Journal reported that the Biden administration plans to restrict Chinese companies’ access to American cloud computing services, such as those operated by
Amazon
(teleprinter:
Amazon
) And
Microsoft
(MSFT). In addition, China announced export restrictions on gallium and germanium, two key components in the production of semiconductors.
The latest tit-for-tat comes as Treasury Secretary Janet Yellen travels to Beijing this week to help warm relations between the world’s two largest economies. Chinese President Xi Jinping on Wednesday urged companies to stop decoupling their supply chains from foreign countries, arguing it harms all parties.
Amazon stock slipped 0.3% in premarket trading.
Microsoft
decreased by 0.6%.
Palantize
(PLTI), the data technology company whose value has more than doubled this year, fell 0.8%.
Nvidia
(NVDA), the first chipmaker to hit a $1 trillion market valuation, fell 0.6%, while rival
Advanced micro-systems
(AMD) fell 0.4%.
Write to Brian Swint at brian.swint@barrons.com