While the broader market looks to have been invigorated by an Independence Day break, one sector sure hasn't been popping off like fireworks.
Technology stocks continue to slump moving into Thursday, July 5, as trade tensions hamper momentum in U.S. and Chinese markets. The Trump administration is set to impose about $34 billion worth of tariffs on Friday, July 6, and China Commerce Ministry Spokesman Gao Feng told reporters Thursday that roughly 60% of the goods set to be affected were made by non-Chinese companies.
While most equities have faced the growing trade war burden, tech stocks have received an outsized brunt of the negative risk. The Technology Select Sector SPDR ETF (XLK) fell 1.18% at the market close Tuesday, July 3, ahead of Independence Day, and continued lower in after-hours trading. The fund has moved into the red in six of the last nine trading sessions.
Micron Technology Inc. (MU) was one of the bigger laggards this week, with shares lower more than 5.5% on Tuesday and indicated to drop about 0.85% on Thursday. The chipmaker's big decline came after it was temporarily blocked from selling some of its products in China.
And in China, the tech-heavy Shenzhen Component Index, which houses more than 2,000 stocks, closed Thursday at its lowest level since November 2014. At the same time, the ChiNext Price Index, which tracks 100 fast-growth companies as a bellwether for future Chinese economic growth, dipped more than 2%.
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