The stock markets in New York are lowered on Monday. Investors are cautious due to the continuing trade tensions between the United States and China. The tech sector in particular is in the spotlight on Wall Street because of the American sanctions against the Chinese technology and telecom company Huawei.
The Dow-Jones index lost 0.5 percent to 25,640 points in the first trading minutes. The broad-based S&P 500 fell 0.6 percent to 2841 points and the tech fair Nasdaq fell 1.3 percent to 7713 points.
Several American chip companies such as Qualcomm, Broadcom and Intel stopped their deliveries to Huawei and fell to 4.7 percent. Google previously decided to restrict Huawei’s access to the Android operating system. Parent company Alphabet fell 1.8 percent. The steps follow the new, more stringent American rules against Huawei that have been established because of suspicions of espionage.
Telecom company T-Mobile US and industry counterpart Sprint are willing to divest parts and make certain commitments in order to get the green light for their merger. Ajit Pai, leader of telecoms supervisor FCC, indicated that, as a result of these commitments, he is inclined to give a positive advice for the deal worth 26.5 billion dollars. T-Mobile rose 5.8 percent, Sprint went up more than a quarter.
Automaker Ford announced it would cut 7,000 jobs and save $ 600 million a year. Ford was lowered by 0.4 percent. Another car manufacturer, Tesla, plunged below the $ limit for the first time since December 2016
Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by lesley.woutersen@economicinform.com.
