By April Joyner and Noel Randewich
(Reuters) – A week of worsening fears on Wall Street leading up to Washington’s increase on tariffs on Chinese goods has taken a toll on stocks that rely heavily on global trade.
With U.S. President Trump saying he is in no hurry to sign a deal with China, the United States raised its tariffs on $200 billion (153.75 billion pounds)in Chinese goods to 25% from 10% on Friday, rattling financial markets already worried the 10-month trade war between the world’s two largest economies could spiral out of control.
Graphic: U.S.-China tariff war and the S&P 500, click https://tmsnrt.rs/2WA1LWX
After Trump said last Sunday he was reversing a decision he made in February to keep tariffs at 10%, Wall Street descended from record highs reached at the start of the month.
Down 0.16% late in Friday’s session, the S&P 500 was set to end the week 2.75% lower, with trade-sensitive stocks becoming bogged down after outperforming for most of 2019. Graphic: China-exposed stocks under pressure, click https://tmsnrt.rs/2LxxNla
Shares of semiconductor companies, the U.S. sector that relies more than any other on China for its revenue, turned sharply lower this week, with the Philadelphia Semiconductor Index down more than 6% since Sunday and cutting its year-to-date gain to 27%.
Graphic: Chip rally cut short, click https://tmsnrt.rs/2Ww7yN0
The so-called FAANG tech stocks, volatile staple stocks that have fuelled a large part of Wall Street’s rally in recent years, have also mostly underperformed as trade fears worsened, with Netflix and Apple both down 7% or more for the week.
Graphic: FAANG underperforms, click https://tmsnrt.rs/2WCDjnF
(Reporting by Noel Randewich and April Joyner; Editing by Alden Bentley and Rosalba O’Brien)