The escalating US-China trade war is crushing the stocks of technology companies.
The Nasdaq plunged 3.5% Monday, posting its sixth-straight down day — the longest losing streak since a nine-day declne in late October and early November 2016, just before President Donald Trump’s election as president.
Apple (AAPL)’s stock fell 5%. Apple (AAPL) generates 17% of its revenue from China.
Many leading chip stocks that also have a major presence in China, such as Intel (INTC), AMD (AMD), Qualcomm (QCOM), Nvidia (NVDA) and Broadcom (AVGO), were all significantly lower as well.
Trade tension with China is having an outsized impact on the the tech sector, and the latest tariffs Trump threatened would hit tech particularly hard.
But trade is not the only reason why several big tech companies have been falling lately. Some investors are also concerned that the sector could be overvalued.
The Nasdaq is still up 16% this year, despite its recent losing streak. Companies that have little to no exposure in China, such as Netflix (NFLX) and Facebook (FB), have soared this year but have cooled off lately along with the rest of tech.
And then there’s Amazon (AMZN), one of several big tech companies that are being scrutinized by US regulators — who may seek to break up or fine Amazon (AMZN) and other big tech firms such as Facebook, Apple and Google (GOOGL) owner Alphabet.
Shares of Amazon fell more than 3% Monday and are on track for their eighth-straight down day. That would be Amazon’s longest stretch of declines since 2006. Amazon has plunged 12% during this current losing streak.