Donald Trump said in a statement Tuesday that Taiwan should pay the United States for protection. That left processor makers with big losses as polls suggest Trump could win the fall presidential election. Nvidia shares fell 6.6 percent on Wednesday, while AMD fell 10.2 percent. Bloomberg reports Tuesday that the U.S. is considering tightening trade restrictions if tech companies don’t stop sharing advanced semiconductor technology with China also had an impact on the declines.
Donald Trump caused a stock market storm. Taiwan in the background
AMD had its worst day on the market since 2020 on Wednesday, when its shares fell 11 percent as the Biden administration began considering tougher trade restrictions on semiconductor sales in China.
The chipmaker woes also dragged down the Nasdaq Composite (down 2.8% on Wednesday) and S&P 500 (down 1.4%). The drop wiped out $469 billion from the Philadelphia Semiconductor Index, which tracks 30 of the largest semiconductor companies. It includes Nvidia, TSMC and Intel.
Investors have become accustomed to hearing good news about technology stocks all the time, so even slightly negative reports cause panic in the markets
– says Dan Coatsworth, investment analyst at AJ Bell.
However, the declines mainly concern companies with a large share of the Asian market. Companies with larger chip production capabilities located in the US, in turn, recorded a significant increase. GlobalFoundries shares jumped 7%, and after a minor correction, the increase stopped at 5.69%. Intel rose even more, by 8%, achieving its best result in the last three months. But before the end of the session, it lost most of the profit it had made.
Donald Trump on Taiwan: How stupid are we?
– Taiwan took our semiconductor industry away from us. How stupid are we? They took all our chip production. They are incredibly rich – said Donald Trump in an interview for Bloomberg. The US presidential candidate would like Taiwan to pay the United States for protection. – I don’t think we are any different from an insurance policy. Why? Why are we doing this? – the politician wondered.
It was precisely these words of Donald Trump that caused such a violent reaction on the stock exchanges. There are many indications that if Trump wins, there will be a major reshuffle in geopolitics.
Source: Gazeta
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