Tech stocks could face a hurdle today as President Trump's official decision on trade could be out today. White House press secretary Sarah Huckabee Sanders said Monday, "we expect that to be out soon." Reports from news agencies expected a decision by today. Treasury Secretary Steve Mnuchin said discussions were expected Friday but not necessarily an announcement.
Reuters reported earlier in the week that it's expected the US restrictions to be announced on Friday.
Tech Stocks Pushed Around
(Click on image to enlarge)
The tech stock heavy Nasdaq ETF QQQ stock price is down 2.25% on the week and was down 3.4% for the week at its lows on Thursday.
The confusion over the next step in trade talks is pushing around tech stocks because many have big exposure to China. The US looking at export controls could risk tech stock revenue estimates later in the year which is causing stock volatility.
First Round Of Tariffs Coming
The first round of both US and China's newly instituted tariffs begin July 6th. That will make products more expensive and the risk is it could slow down spending. The real risk as we see it are the export controls mentioned above which would not only slow spending but could cut revenues.
Our Take
We see the major indices like S&P 500 ETF (NYSEARCA: SPY) and QQQ (NYSEARCA: QQQ) all turning into a downtrend which adds risk to the news over the next few days.
Comments
Log in or sign up to join the conversation.