- Home
- >
- Market Rumours
- >
- 3 things that can trigger a new wave of selloffs before the end of the month
3 things that can trigger a new wave of selloffs before the end of the month
Rating:
Loading...Crude prices are down more than 7% this week as trade worries spilled over to other markets. Investors also loaded up on Treasurys this week. On Thursday, the 10-year Treasury note yield fell to its lowest level since October 2017.
“It seems, for the moment, [trade] is the only thing investors are thinking about,” said Mike Bailey, director of research at FBB Capital Partners. “You’ve got this one narrow issue that’s basically spreading across the entire market.”
“Investors had been hoping for more certainty,” Bailey said. “Instead, they’re getting more uncertainty across the board.”
Energy and tech are the worst-performing sectors for the week. The energy sector is down 4% while tech — the largest S&P 500 sector by market weight — has lost 2.6%.
Chipmakers led tech down this week as the VanEck Vectors Semiconductor ETF (SMH) dropped 4.9%. Qualcomm and Broadcom are the worst-performers in the ETF this week, dropping 17.6% and 10%, respectively.
Chip stocks have been under pressure as the U.S. increases pressure on Chinese telecom giant Huawei. Last week, made it harder for U.S. companies to do business with Huawei, before granting a temporary 90-day reprieve for the company.
Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock is down 4.8% this week.
“The growing worries around a US/China elongated trade battle and its implications on the tech space are heavily weighing on the minds of both investors and the companies themselves caught in the cross hairs,” Dan Ives, analyst at Wedbush Securities, wrote in a note to clients. “The ‘poster child’ for the US/China trade wars continue to be Apple with the stock under heavy pressure as many competitors are yelling fire in a crowded theater around the potential China impact to Cupertino if this situation worsens.
Source: CNBC
Trader Georgi Bozhidarov Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
