Chipmaker shares drop on fallout from Huawei blacklisting
Shares of chipmakers fell Monday in premarket action, dragging down major averages as Wall Street investors digested the fallout from President Trump’s blacklisting Chinese telecommunications giant Huawei Technologies.
Trump’s decision last week to deny Huawei access to U.S. technology is expected to cause U.S. companies to cut ties with the world’s No. 2 smartphone maker. Google, for example, is reportedly halting some services for the Huawei.
Meanwhile, Qualcomm suspended shipments to Huawei of its computer chips and told its employees not to communicate with the Shenzhen, China-based corporation.
|I:DJI||DOW JONES AVERAGES||25764||-98.68||-0.38%|
|I:COMP||NASDAQ COMPOSITE INDEX||7816.284652||-81.76||-1.04%|
Futures on the Dow Jones Industrial Average were off 0.53 percent, the S&P 500 down by 0.56 percent and the Nasdaq Composite lower by 1.21 percent.
Shares of Sprint soared on a report that federal approval of its merger with T-Mobile is imminent.
|TMUS||T-MOBILE US INC||75.37||-0.01||-0.01%|
The yield on the 10-year Treasury was flat at 2.3 percent.
Crude oil prices rose 0.3 percent to $62.95 per barrel.
China’s Shanghai Composite closed 0.41 percent, the Hang Seng closed off 0.57 percent, and Japan’s Nikkei 225 ended up 0.24 percent.
Britain’s FTSE 100 was down 0.99 percent, France’s CAC 40 tumbled 1.49 percent and Germany’s DAX declined 1.53 percent.