A week of nerve-wracking fears on the Wall Streets, which witnessed Washington’s tariff hike on Chinese goods, had come to end with grievous weekly losses, however, latest calamitous events could have only been a beginning of further worst-case scenarios ahead, as a tariff hike on $200 billion worth of Chinese goods including critical tech equipment such as modems and circuit boards had already begun to take a death toll on the stocks, heavily depended upon Chinese exports.
Adding further strains into the issue, which could have been lethal for some of the start-up tech companies, US President Donald Trump had been quoted saying earlier on Friday (May 10th) that he had been in no rush to reach a trade deal with China, expecting that the Chinese exporters would be paying off for the additional tariff.
Nevertheless, multiple analysts had been quoted saying following the implementation of the latest tariff hike that the US tech firms had been absorbing a previous 10 percent tariff hike without intervening the US consumers, however, a 25 percent tariff would likely to hit core US consumers amid a US economy, where expenses were rising, but wage growth kept faltering.
Stoned by the Trump’s China tariff, which emerged out of the blue, the S&P 500 had closed the week 2.75 percent lower, while shares of semiconductors companies largely dependent on Chinese export were heavily plummeted with Philadelphia Semiconductor Index closed down the week with a plunge of more than 6 percent.
Widely cherished FAANG stocks, had also been underperformed amid tariff hike worries and dragged down the tech-heavy Nasdaq Composite, while Netflix and Apple, both had wrapped up the week down by more than 7 percent.