Semiconductor stocks tumbled on Wednesday after former US president Donald Trump said Taiwan should pay for its own defence and the US was reported to be considering tougher restrictions on trading chips with China.
The tech-heavy Nasdaq Composite index fell 2.8 per cent in New York, marking its worst day since December 2022. The S&P 500 index was 1.4 per cent lower, ending a three-session winning streak.
“Investors have got used to nonstop good news from tech stocks, so the slightest bit of negativity has caught people off guard and caused panic on the markets,” said Dan Coatsworth, an investment analyst at AJ Bell.
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