Stocks fall on report US may limit tech exports to China
AP Markets Writer
NEW YORK (AP) — U.S. stocks are falling Monday morning following losses in Europe and Asia, and technology companies are skidding after The Wall Street Journal reported that the Trump administration plans to limit high-tech exports to China and will limit Chinese investment in American technology companies. Harley-Davidson is falling after it said it will shift the production of some motorcycles to Europe in response to taxes the EU put on U.S. exports.
KEEPING SCORE: The S&P 500 index shed 27 points, or 1 percent, to 2,727 as of 10 a.m. Eastern time. The Dow Jones Industrial Average lost 275 points, or 1.1 percent, to 24,303. The Nasdaq composite fell 107 points, or 1.4 percent, to 7,585. The Russell 2000 index of smaller-company stocks slid 21 points, or 1.3 percent, to 1,663.
US-CHINA TENSIONS: Chipmakers took losses after the Wall Street Journal said the Trump administration will limit technology exports to China as well as investment by China. China is attempting to become a global leader in biotechnology, electric vehicles and other industries, and the report said the administration wants to slow Beijing’s progress in those areas. President Donald Trump has threatened to put tariffs on hundreds of billions of dollars in Chinese imports over complaints Beijing steals or pressures foreign companies to hand over technology and is also pressuring China to buy more U.S.-made goods.
Chipmaker Micron Technology, which gets half its revenue from China, lost 5 percent to $54.33 and Intel dipped 1.5 percent to $51.69. Nvidia lost 2.9 percent to $243.55. All 72 of the technology companies listed on the S&P 500 were trading lower.
OVERSEAS: Germany’s DAX fell 1.7 percent and London’s FTSE 100 gave up 1.6 percent. France’s CAC 40 shed 0.9 percent. Hong Kong’s Hang Seng lost 1.3 percent. Tokyo’s Nikkei 225 shed 0.8 percent and in South Korea the Kospi was little changed.
HARLEY SHIFTS: Harley-Davidson will move the production of motorcycles headed for Europe from the U.S. to overseas facilities. On Friday the European Union put tariffs on motorcycles from the U.S. as well as other goods like bourbon, peanut butter and orange juice. The EU tariffs on $3.4 billion worth of U.S. products are retaliation for duties the Trump administration is imposing on European steel and aluminum.
Harley said in a regulatory filing Monday that EU tariffs on its motorcycles exported from the U.S. jumped between 6 percent and 31 percent, which translates into an extra $2,200 per average motorcycle exported from the U.S. to the EU.
Its stock fell 1.4 percent to $43.59.