Wall Street slumps over trade war fears, pound breaks $1.30

From Yahoo Finance: 2024-07-17 11:37:19

Wall Street stocks slumped over trade war fears, wiping off £260bn from big companies. Microsoft, Apple, and Nvidia fell 1-6%. Tech stocks plunged due to the Biden administration’s plan for tighter import controls on companies sharing chip-making tech with China. UK inflation holding firm dashed hopes for August interest rate cuts.

US industrial production rose in June, with manufacturing output up by 0.4%. Utilities output jumped 2.8%. Analysts believe the industrial strength is unlikely to continue in July due to a drop in vehicle sales and gloomy manufacturing conditions. Some of the strength in industrial production in June is expected to reverse this month.

Apple hit an all-time high as the top pick by Morgan Stanley, with an expected mega upgrade cycle driven by Apple Intelligence. The AI platform will boost iPhone and iPad shipments. Apple’s yet-to-be-released AI tools will be available to only 8% of existing users, which could lead to a significant upgrade cycle.

More than 400,000 young people could have up to £2,000 from forgotten Child Trust Funds waiting to be claimed. Every child received a voucher worth £250 at birth, with a max of £500 for lower incomes. The money was locked until age 18. ASML shares dropped 7% amidst US restrictions on its China business despite better-than-expected earnings.

Oil prices held steady amid falling US inventories, offsetting weakening demand in China. Brent crude oil futures were up to $83.74 a barrel, while US West Texas Intermediate crude futures were at $80.86. Weaker Chinese economic performance and expectations of a US interest rate cut have counterbalanced each other.



Read more at Yahoo Finance: Wall Street slumps amid China trade war fears while pound breaks $1.30 for first time in a year