Tech Sector Falls Following Huawei Restrictions

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as tech sector falls following Huawei restrictions. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stocks slide as Huawei fallout drags down Qualcomm, other tech shares

Stocks fell on Monday as the intensifying fallout from a U.S. crackdown on Chinese telecom giant Huawei pressured the technology sector. The Dow Jones Industrial Average declined by 84.1 points to 25,679.90 as Apple lagged. The 30-stock index dropped as much as 203 points earlier in the day.

The S&P 500 (SPY) fell -0.67% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Communication services (XLC), materials (XLB), real estate (XLRE) and technology (XLK) each had losses of over 1%. Consumer discretionary (XLY), consumer staples (XLP), healthcare (XLV) and industrials (XLI) each had small losses of less than 1%. Energy (XLE), financials (XLF) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index dropped 84 points (-0.33%) to close at 25,679. The Nasdaq gave back 113 points (-1.46%) to settle at 7,702.

Tech Sector Falls Following Huawei Restrictions

Stocks finished in the red Monday as the tech sector felt the pressure from the US restrictions on Chinese telecom company Huawei. Google, Intel, Qualcomm and Broadcom will not supply Huawei until further notice. This comes after President Trump required US companies to get a license in order to do business with Huawei.

Key Takeaway…

The following video clip explains how Huawei’s restrictions affect the tech sector:

Chip stocks fall after Google cuts ties with Huawei – Six experts on what to watch

Google removed Huawei’s Android license after the Trump administration added the Chinese company to the ‘Entity List’, which restricts the company’s ability to purchase technology from U.S. companies. Six experts weigh in on what this means for the semiconductor sector and other companies looking to introduce 5G technology.

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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5/20/19

S&P 500 Sector Graph

Tech Sector Falls Following Huawei Restrictions

S&P 500 (SPY)

Tech Sector Falls Following Huawei Restrictions

Communication Services (XLC)

Tech Sector Falls Following Huawei Restrictions

Consumer Discretionary (XLY)

Tech Sector Falls Following Huawei Restrictions

Consumer Staples (XLP)

Tech Sector Falls Following Huawei Restrictions

Energy (XLE)

Tech Sector Falls Following Huawei Restrictions

Financials (XLF)

Tech Sector Falls Following Huawei Restrictions

Real Estate (XLRE)

Tech Sector Falls Following Huawei Restrictions

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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