INTERNATIONAL – Wall Street closed lower as the fallout from Huawei dragged down tech stocks.
The Nasdaq plummeted 1.7 percent on Monday as the crackdown on China’s largest telecommunications and electronic equipment maker pressured the US technology sector. US chipmakers tumbled as investors acknowledged the collateral damage. US firms will also lose revenue by cutting Huawei as a customer.
Google-owner Alphabet closed the session 2 percent lower after following the White House’s orders to cut ties with the Chinese tech giant. The likes of Intel, Qualcomm ad Broadcom also announced that they would not supply Huawei until further notice so their share prices also tanked.
Stocks higher on Trump’s temporary reprieve
In an attempt to control the damage done to US stocks, Trump overnight announced that the US Commerce Department would allow Huawei to purchase American made goods for the next three months. This is an attempt to maintain existing networks and to keep updates to existing Huawei handsets. The grace period will allow US firms the space to determine longer term measures that currently rely on Huawei equipment for critical services.