U.S. stocks fell from record highs on Wednesday as technology companies came under pressure amid concerns about U.S. export curbs to China and Donald Trump’s stance on Taiwan.
The Dow Jones Industrial Average (^DJI) fell about 0.1%, the S&P 500 (^GSPC) fell nearly 1%, while the tech-heavy Nasdaq Composite (^IXIC) fell more than 1.6%.
Stocks are retreating as concerns about risks to tech names overshadow the high expectations for rate cuts that have fueled the rally in recent days. Those worries weighed on heavyweights whose AI-driven profits have helped the S&P 500 to new record highs this year, with chipmaker Nvidia (NVDA) down about 4% in early trading.
The Biden administration has told allies it wants to impose tighter restrictions on companies that continue to make advanced chip technology available to China despite existing export curbs, Bloomberg reported. Shares of ASML (ASML, ASML.AS), mentioned as a potential target, fell more than 8% after the Dutch chip gear maker posted solid quarterly results.
Meanwhile, Republican candidate Trump questioned U.S. defense aid to Taiwan in an interview with Bloomberg, suggesting the Chinese-claimed island should pay for U.S. protection. Shares of chipmaker TSMC (TSM, 2330.TW) fell more than 6%, wiping out nearly $30 billion in market value in Taiwan as shares there fell.
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