The intensifying tariffs imposed on China are hurting U.S. chipmakers. AMD (AMD) and ASML (ASML) are some of the stocks facing selling pressure. Sellers did not sell shares of Nvidia (NVDA) and Intel (INTC).
The U.S. is considering tighter export rules to China. Chinese technology firms would fall behind. Firms like Baidu (BIDU), Alibaba (BABA), and JD.com (JD) are pulling back. In early July, those stocks started to build momentum. However, the renewed trade restriction worries will set China further behind. Expect Chinese tech firms to continue on a downtrend.
In the automotive sector, Stellantis (STLA) may retest the $20.00 low. The firm’s Chrysler unit is recalling 24,000 minivans. The Pacifica, a plug-in hybrid, has fire risks. Stellantis urged its owners to park outside until it issues a software update.
Ford (F) continues to break out. The stock tested the $12.00 low in February. When sellers failed to send the stock lower, F stock rallied, closing at $14.55. The firm will increase production of its F-Series super duty truck at its Oakville, Ontario (Canada) plant. Ford is investing $2.3 billion for this facility.
As the week winds down, expect quiet trading today. In Europe, the ECB kept its rate unchanged. It shifted its plans to cut interest rates for September. Similarly, the Fed will not cut rates until September, either.
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