US stocks drop as Huawei ban hits tech shares

Published May 20, 2019
Wall Street stocks dropped on Monday amid increasing worries over US-China trade talks and US restrictions on Huawei. — Reuters/File
Wall Street stocks dropped on Monday amid increasing worries over US-China trade talks and US restrictions on Huawei. — Reuters/File

Wall Street stocks dropped early on Monday amid worries over United States-China trade talks and as US government restrictions on Chinese company Huawei hit American technology companies.

About 15 minutes into trading, the Dow Jones Industrial Average stood at 25,661.41, down 0.4 per cent.

The broad-based S&P 500 had shed 0.6pc to 2,842.14, while the tech-rich Nasdaq Composite Index had tumbled 1.4pc to 7,704.41.

US stocks have been volatile the last two weeks as the prospect of a trade agreement between Beijing and Washington has been shaken by fresh tariff announcements on both sides.

In the midst of a trade war with Beijing, President Donald Trump has barred US companies from engaging in telecommunications trade with foreign companies said to threaten American national security, a move targeting Chinese giant Huawei.

Google, which makes the Android system used on many smartphones, said it was complying with the US order.

Google parent Alphabet fell 2.3pc, while shares of chip companies Qualcomm and Intel also retreated after US news reports said they had stop supplying Huawei.

Among other companies, US shares of Deutsche Bank lost 2.2pc following a New York Times report that the bank failed to forward suspicions about transactions involving US President Donald Trump to American authorities.

A Deutsche Bank spokesman disputed the article.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...
Provincial share
Updated 17 Mar, 2024

Provincial share

PPP has aptly advised Centre to worry about improving its tax collection rather than eying provinces’ share of tax revenues.
X-communication
17 Mar, 2024

X-communication

IT has now been a month since Pakistani authorities decided that the country must be cut off from one of the...
Stateless humanity
17 Mar, 2024

Stateless humanity

THE endless hostility between India and Pakistan has reduced prisoners to mere statistics. Although the two ...