Why semiconductor stocks tumbled today?

Trade war tensions battered the US stock market today. Dow, S&P 500 and Nasdaq indexes were down 1.33%, 1.37% and 2.09%, respectively. Especially, the semiconductor sector was hammered badly. The Philadelphia Semiconductor Index or PHLX Semiconductor Index (SOX) was down 3% at the end of today’s trading session. It’s worth noting that this index was up 23% in the last one year and 6% year-to-date.

The famous chipmaker stocks like Nvidia (NVDA), Advanced Micro Devices (AMD), Micron Technology (MU) were all bleeding today. From the early hours of trading, the semiconductor stocks were trading in the negative territory after the reports said that President Donald Trump plans to curb the foreign investments in the US tech companies. Things got worse when the US Treasury Secretary tweeted that this is not only specific to China, “but to all countries that are trying to steal our technology”.