Tech Stocks Surge After U.S. - China Trade Dispute Cools

This is not investment advice. The author has no position in whatever of the stocks mentioned. WCCF TECH INC has a disclosure and ethics policy.

Over the weekend leaders from the Us and the Peoples Republic of China, among others, met to at the Thou-20 Superlative in Japan. U.South. President Donald Trump met with President Xi Jinping of China and the overriding priority at hand was the trade war betwixt the two economical giants, and more than specifically, how to observe a way frontward. Tech stocks with exposure to Mainland china boomed every bit a outcome.

Trump: Trade negotiations are dorsum on the tabular array and no further Tariffs. Huawei ban lifted

Earth leaders pose for a photograph June 30th, 2019 G20 Japan

Trump and Xi sat down and the outcome of the meeting was much more positive than many had dared hoped for. The U.S. will not enact any further tariffs as of now, which means the ~$300B of Chinese imports that have been discussed as potentially receiving increased tariffs will be safe for the moment.

Perhaps near importantly: Huawei tin can exhale a sigh of relief as the ban on U.South. companies selling components to Huawei is getting lifted. Huawei is a major purchaser of many parts and services from American companies including the likes of Intel, NVIDIA, and Microsoft.

Nosotros actually wrote on a specific case, that of Broadcom, which forecasted a loss of $2 billion dollars in lost sales this year alone due to the Huawei ban.

Many companies took hits to their stock toll as investors feared a loss of a major customer like Huawei, among untold numbers of other all the same-to-be-banned Chinese customers, would impact their corresponding long term profitability.

Tech stocks soar on good news

Today scrap and software stocks surged on the news of Huawei'south ban getting lifted. Tech companies with sizeable exposure to Huawei and the greater situation with People's republic of china were given some relief equally their outlook greatly improved for the near term.

Broadcom (NASDAQ:AVGO), as pointed out earlier was particularly exposed to the loss of Huawei'south revenue stream, and it'southward shares soared by more than five percentage today. Its not everyday a company can (re)add $2 billion to its yearly outlook with a simple annunciation out of the White House!

Other directly suppliers to Huawei had good days every bit well. Intel (NASDAQ:INTC), NVIDIA (NASDAQ:NVDA), and Microsoft (NASDAQ:MSFT) all posted green days. Micron, who sells memory chips to Huawei, rose to $40.eleven per share erasing most of its losses from the month before.

AMD joined in on the fray with a nearly three percent gain today. The company concluded the solar day'southward session at $31.20, still shy of its 52-calendar week high of $34.xxx. Telecom company Lumentum Holdings enjoyed a gain of two pct upward on the solar day. In terms of gross market cap added today, Apple led the pack with a i.8 per centum gain to its share price which was expert for an additional $16B in market capitalization.

Broadening our look, the Due south&P 500 hit an all-time high today, driven past the very strong operation from tech stocks.

Overall its very good news to see Trump and Xi inch towards resolving the trade dispute, but of form nothing of substance, other than the Huawei ban getting lifted came out of the meeting. We are withal a very far ways off a permanent merchandise deal between the two countries, a bargain that might escape the clutches of the current Trump administration and in fact, might never materialize at all.