Tesla, Chip Stocks Intel, and Qualcomm are afraid of expanding trade wars with China’s retaliation
China will be in charge of 34%of US products on April 10th. In addition, we have published a curb on some rare exports of Earth, and added several US companies to the export control list and the “untrusted organization” list, allowing Beijing to be punished.
This measure performed 34%of Donald Trump’s mission on Wednesday, causing a massive market collapse on Thursday, following China’s job on Wednesday. The latest charges were on a 20%tariff on China earlier this year.
Investors were already worried about the destruction of demand for everything from potential to stop supply chains, price hikes and to sneakers.
Among the consumer technology companies exposed to China, Tesla and Apple’s shares decreased by 8% and 4%, respectively. Both companies have local output in China, but the obligations for parts affecting the United States can make margin and enforce price hikes.
Nischer Wu de UPA, the practitioner of Everest Group, said, “Some technology companies have established a local supply chain in China, but most of China’s source components should not be supplied in China, but they expect to raise prices for parts and parts that are not supplied in China. Increasing the price in the bruises with competitors, Susannah Street, Hargreaves Lansdown, said, “Apple’s smartphone sales are already decreasing in China and are facing cheaper competition in China. It is likely that sales will be eroded more rapidly.
The stocks of Alphabet, Microsoft and Amazon.com have been conquered because of their limited exposure to China.
GE Healthcare’s stocks slipped almost 13%of China’s export control on rare metals used in MRI scanning. Announcing anti -dumping investigations on the imports of certain medical CT tubes in the United States and India have been worrying.
Chip stock
The United States exports much less electronic equipment to China, but chip companies are faced with a headwind. Intel, application materials, and qualcomm shares have been reduced from 5% to 8% by calculating more than 30% of their profits in China.
According to economic data provider trading economics, the United States exported more than $ 15 billion in electricity and electronic equipment to China in 2024, and most of the value comes from integrated circuits, transistors and other semiconductor devices. In contrast, the United States imported more than $ 127 billion in electronic equipment from China last year.
UDUPA said, “Semiconductor will have a greater impact … We are already witnessing the evolution of the domestic ecosystem as a direct alternative to all major semiconductor companies in the United States, which is likely to accelerate.
natural resources
OPEC+ petroleum production, which is expected in May, has been added to the loss.
EXXON and Chevron fell by more than 5%. TOP Oilfield Service Company SLB fell by 10%, and marathon oil, the largest US oil refinery, fell 6%. Dupont chemical company dupont slipped 12%.
Tamas Varga, an analyst at PVM, said, “The trade war will expand, the economic downturn is feared, and as a result, the increase in oil demand will be a big hit.”
China is also the largest market for US agricultural products even if the imports of US farms decrease last year.
Top Grain Traders shares such as Archer-Daniels-Midland fell 8%, while BUNGE fell 6%. The fertilizer mosaic and CF industries fell 10% and 8%, respectively.
China’s tariffs on US soybean exports will increase the costs of local customers, especially animal feed producers, and can stimulate more in Brazil and Argentina, MorningStar’s analyst Seth Goldstein said.
bank
Bank stocks have been extended from Thursday. The industry was blurred by the fear that trade disputes could strengthen consumer trust, reduce expenditures, weaken loan demand, and advise for transactions.
JPMORGAN CHASE, the largest US bank by assets, recorded 7%. Wall Street Titans Goldman Sachs and Morgan Stanley fell by more than 7%.
machine
Caterpillar and Deere, a heavy equipment manufacturer, fell by 5% and 4%, respectively, respectively, respectively, respectively, respectively, respectively.
China is a major buyer of construction and agricultural equipment and is a major company in global infrastructure spending.
sleeve
Trump opposed the stocks of major luxury and shoe companies after Trump proposed to reduce tariffs on US imports. Ralph Lauren’s share price increased by 2.5%, while Tapestry increased 3.6%.
NIKE increased 4%, Roger Federers increased 7.2%, while Lululeman Athletica rose 3%. Stocks first fell after China’s retaliatory tariffs, the main import contributors.
