China Becoming Third Rail for US Megacap Investors
- Increased geopolitical tensions hit stocks with ties to China
- Investors have shifted allocations amid broader economic fears
An Apple store in Beijing.
Source: Bloomberg
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A resurgence of geopolitical tensions with China has some investors steering clear of megacap tech stocks exposed to the world’s second-largest economy.
With the Chinese government’s position on Apple Inc.’s iPhone seen as the latest challenge in a market once regarded as a nearly inexhaustible source of growth, it’s sparked investor concerns that the situation could worsen — sending money flowing out of shares of firms including Apple and Nvidia Corp. this month.