High-Flying Chipmakers See Worst Plunge Since 2020: Markets Wrap
- US floats tougher trade rules to rein in China chip industry
- Beige Book shows slight economic growth, cooling inflation
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The world’s largest technology companies got hammered as concern about tighter US restrictions on chip sales to China spurred a selloff in the industry that has led the bull market in stocks.
From the US to Europe and Asia, chipmakers came under heavy pressure. American powerhouses Nvidia Corp., Advanced Micro Devices Inc. and Broadcom Inc. drove a closely watched semiconductor gauge down almost 7% — the biggest slide since 2020. Across the Atlantic, ASML Holding NV tumbled over 10% even after the Dutch giant reported strong orders. A plunge in Tokyo Electron Ltd. led losses in the Nikkei 225 Stock Average.