Nasdaq Tumbles Over 2% Amid China Trade Curbs, Dow Reaches Record High
The Nasdaq dropped over 2% due to concerns about U.S. trade restrictions on China, leading to a decline in tech and chip stocks. In contrast, the Dow reached a record high, supported by strong performances from Johnson & Johnson and UnitedHealth Group. The tech sector led declines, while the energy sector saw gains.
![Nasdaq Tumbles Over 2% Amid China Trade Curbs, Dow Reaches Record High](https://devdiscourse.blob.core.windows.net/aiimagegallery/26_06_2024_12_31_11_1001751.png)
The Nasdaq tumbled more than 2% to a two-week low on Wednesday, driven down by megacap chip and tech stocks amid the prospect of tighter China-focused U.S. trade curbs. In stark contrast, the Dow Jones Industrial Average bucked the trend, touching an intraday record high.
A report indicating the Biden Administration might implement severe trade restrictions against China caused semiconductor stocks to plummet, with the Philadelphia SE Semiconductor index spiralling 4.9%. AI-chip leader Nvidia fell 6.2%, ASML's U.S.-listing dropped 11.4%, and Taiwan Semiconductor Manufacturing's U.S.-listed shares shed 6.4%.
The broader slump in stocks followed a strong rally in tech companies earlier this year and recent gains in small-cap stocks. While the S&P 500 Tech index led sectoral losses, energy stocks gained 1.1%. The Dow's ascent was supported by Johnson & Johnson and UnitedHealth Group rising 3.3% and 4% respectively. Apple, Amazon, Meta Platforms, and Tesla fell between 2.6% and 4.1%.
(With inputs from agencies.)
ALSO READ
Indian Stock Markets Show Mixed Trends Amid Global Cues and FIIs Selling
Norway's Wealth Fund CEO Warns of Stock Market Uncertainty Amid Geopolitical Shifts
Norway's Wealth Fund Faces Uncertain Future Amid Stock Market Volatility
Stock Markets Soar as Nifty 50 and Sensex Close with Significant Gains
Investors Brace for Continued Stock Market Volatility Amid Recession Worries