Wall Street indices are trading mixed; tech stocks notably decline

The Dow Jones explores new highs while its peers decline due to widespread losses in large tech stocks. Chips lead the losses.

The three main Wall Street indices have mixed performances Wednesday morning. The Dow Jones, composed of shares from 30 industrial giants, moves moderately up by 0.54% to 41,174.56 points, while the S&P 500 is down 1.25% at 5,596.38 points, and the Nasdaq technology retreats 2.62% to 18,023.84 points.

Market sentiment is affected by reports that the United States is considering imposing stricter restrictions on chip companies. Large tech companies, which have led gains this year, are dragging down the averages.

Shares of Apple Inc, the largest company in the market, are down 2.73% to $228.42, while Nvidia, the artificial intelligence technology giant, falls 6.44% to $118.23. Other related stocks are also declining sharply.

Whether large tech companies can maintain leadership will depend on earnings. Pullbacks are healthy and provide markets with opportunities to adjust, offering buyers better prices.

The pressure aims to prevent China from continuing to grow in a booming strategic sector. In the past, US efforts to weaken China’s chip market have caused strong reactions in global markets.

Investors also recalled that US presidential candidate Donald Trump said Taiwan had taken 100% of the US chip business and should now pay for the defense it has received.

Chip companies Marvell Technology, Broadcom, Qualcomm, Micron Technology, Advanced Micro Devices, Arm Holdings, and Super Micro Computer each fell more than 5%. The S&P 500 technology index led sectoral declines with a 2.7% drop.