📈 China Concerns Weigh on Tech

This is why tech was heavy yesterday.

Tech Stocks Weak

Just a day after the market ripped on positive CPI news, tech stocks generally sold off yesterday amid concern about incoming tariffs under the Trump administration and China’s response to it.

The biggest loser on the day was AAPL, which dropped 4% yesterday.

The stock dropped after new data showed that Apple is no longer the best selling smartphone brand in China.

On top of that, the Chinese government announced that it would begin subsidizing phones, tablets, and smartwatches from Chinese companies by 15%.

Growing China Concerns

This is the first major news of US/Chinese tensions impacting a major tech company since Trump’s election, but the impact does not stop with Apple.

For example, Nvidia is being litigated in China right now for potential antitrust violations based on a merger that they recently made.

Tesla was heavy yesterday as well - and it’s possibly because investors are concerned about their business in China.

It’s very possible that subsidies come to EV manufacturers in China as well.

This is a growing theme that we need to be cognizant of going forward, as it has the potential for massive impact to US tech stocks.

I explain this in much more detail in this video: