Stocks exposed to the recent tensions over technology between China and the U.S. were reacting on Wednesday after markets were closed on July Fourth.
On Tuesday, The Wall Street Journal reported the Biden Administration plans to restrict access of Chinese companies to U.S. cloud-computing services, such as those operated by
Amazon
(ticker:
Amazon
) and
Microsoft
(MSFT). Separately, China announced export restrictions on gallium and germanium, two key components in the production of semiconductors.
The latest tit-for-tat comes as Treasury Secretary Janet Yellen heads to Beijing this week to help warm the relationship between the world’s two biggest economies. China’s President Xi Jinping on Wednesday urged companies to stop decoupling their supply chains from foreign countries, arguing it harms all sides.
Amazon stock slipped 0.3% in premarket trading.
Microsoft
declined 0.6%.
Palantir
(PLTI), the data tech company that has more than doubled in value this year, retreated 0.8%.
Nvidia
(NVDA), the first chip maker to reach a $1 trillion market valuation, fell 0.6%, while rival
Advanced Micro Devices
(AMD) declined 0.4%.
Write to Brian Swint at [email protected]
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