Intel Stock Drops 20% as Trump Targets CHIPS Act, Dow Jones & Nasdaq Rebound
The sentiment improved today for stock markets, as S&P 500 and Dow Jones recover loses around 5% while Intel stock has lost almost 20%.
Intel Plummets as TSMC Acquisition Hopes Fade
Intel’s stock saw a surge in demand last month, climbing $8 to $27.55, following speculation that Taiwan Semiconductor Manufacturing Co. (TSMC) was considering an acquisition. However, as the rumors faded, sentiment quickly turned negative, leading to a sharp gap lower last week.
This week, the sell-off accelerated after TSMC confirmed a $100 billion investment in U.S. chip production but made no mention of acquiring Intel. Investor disappointment led to further bearish momentum, pushing Intel shares down nearly 5% to $20.20 before a slight recovery.
Trump Moves to Repeal CHIPS Act, Pressuring Intel Further
Adding to Intel’s struggles, President Donald Trump called for the repeal of the CHIPS Act, criticizing its direct funding approach for semiconductor companies. Trump highlighted major investment commitments from firms like Apple and TSMC, arguing that such expansion can happen without government subsidies.
Trump’s push to eliminate the CHIPS Act has placed further downward pressure on Intel, as it was one of the largest beneficiaries of the program’s funding. The uncertainty surrounding semiconductor policy has contributed to the continued weakness in Intel’s stock.
Dow Jones Rebound on Tariff Exemption Hopes
While Intel continues to struggle, broader markets showed signs of recovery today. The Dow Jones Industrial Average, which fell over 4% in the past two days amid escalating tariffs on China, Canada, and Mexico, managed to rebound as trade uncertainty eased.
Earlier today, the White House stated that Trump is open to discussing additional tariff exemptions, which helped boost risk sentiment. As a result, both the Dow Jones and Nasdaq gained around 1.5%, recovering from recent losses.
Nasdaq Bounces Off Key Support
The Nasdaq Composite hit a peak of nearly 22,200 in February but suffered a sharp 10% decline last week, dropping to 20,060 points yesterday. However, the index formed a doji candlestick on the daily chart, a potential bullish reversal signal.
Additionally, the 200-day SMA (purple) acted as support, preventing further downside. With price rebounding from this level, today’s 1.5% gain suggests a possible bullish turnaround in the tech-heavy index.
Market Outlook
Intel’s stock remains under heavy selling pressure, with the absence of a TSMC acquisition and Trump’s attack on the CHIPS Act fueling pessimism. Meanwhile, the broader market outlook is improving, as tariff exemption talks help stabilize risk sentiment. If trade negotiations progress further, we could see continued upside in major indices like the Dow and Nasdaq, while Intel’s fate hinges on future semiconductor policy developments.
Dow Jones Industrial Average Live Chart
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