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U.S.-China tensions are expected to rise and increasingly weigh on the technology sector

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U.S.-China tensions are expected to rise and increasingly weigh on the technology sector

Photo caption: People wearing protective masks wait for checking their temperature in an Apple Store, in Shanghai, China, as the country is hit by an outbreak of the novel coronavirus, February 21, 2020. Aly Song | Reuters. Article by Patti Domm. Sat, May 30 2020.

KEY POINTS

  • U.S.-China relations are worsening and analysts say technology shares, in particular, could be vulnerable to retaliation from Beijing.

  • President Donald Trump said the U.S. would end its special treatment of Hong Kong, and now investors are watching for a response ahead of Monday morning trading.

  • Technology is most vulnerable because of its revenue exposure and supply chain issues.

The rising tensions between the U.S. and China could continue to hang over the technology sector, even though President Donald Trump on Friday stopped short of threatening Beijing with more trade actions.

The president said the U.S. was ending its preferential treatment of Hong Kong and terminated the U.S. relationship with the World Health Organization because it did not act aggressively enough to prevent the global spread of the coronavirus. The action on Hong Kong was taken in response to Beijing’s imposition of a new security law on Hong Kong. […]

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