The US stock market fell sharply on Thursday, and Dow Jones fell more than 400 points. Sino-USA trade wars continue to bring pressure, and more companies have given the best to do business with Huawei, the Chinese telecom giant.
Time Taipei 23:38
Dow Jones Industrial Average decreased 371.35 points or 1.44% to 25405.26.
Nasdaq index fell 117.76 points or 1.52% to 7633.09.
The S&P 500 index decreased by 37.71 points or 1.32% to 2818.56.
IHS Markit announced that the growth of manufacturing activity in the US in May was the slowest since September 2009. After the data was released, after the stock market expanded.
Analysts say that the trade situation seems even more bleak, and stock market investors need to be careful. Data manufacturing showed signs of slowing economic recovery, but the Fed is not in a hurry to cut interest rates.
Chip stocks fell, Qualcomm proportions fell by 2.6%, Xilinx fell 3.2%.
The price of Apple shares also fell by 1.6%. UBS Bank analysts broke the Apple target of $ 235 to $ 225, and noted that Apple's profits will be lower as the smart phone market weakens and the Sino-USA trade war continues.
Army Holdings, a UK chip design company, said it had given the best to do business with Huawei to comply with US regulations.
At the same time, China has adopted a harder language for the US Department of Commerce. Spokesman Gao said that if the US wants to continue consulting, it should show sincerity and correct wrongdoing. Only then can the negotiations continue.
He also noted: "The prevention of Chinese companies by the US not only damages the normal business cooperation between the two countries, but also poses a serious threat to industry security and global supply chain."
US Secretary of State Pompeo told CNBC on Thursday that the dialogue was still very important. But he also said that Huawei worked with the Chinese government.
Since the beginning of 2018, China and the United States have set tariffs on each other's goods, which has caused financial markets to be hit hard and weakened corporate and consumer confidence. At the beginning of this month, China and the United States put tariffs on the other party's goods, and the tension increased.