All US stock markets fell sharply today, and technological stocks were hit particularly hard as China retaliated to increase US tariffs by halting US agricultural imports and eventually joined the market pressure by slipping the yuan against the dollar. .
At one point, Dow was down to nearly 900 points before staging a late afternoon to shut down around 760 points. The Nasdaq, market is home to a variety of technology stocks, so its value dropped by 3.4%, or 277.10 points.
Shares of Alphabet (parent company of Google), Amazon, Apple, Facebook, Microsoft, Netflix and Twitter were all down for the day. As CNBC reported, the largest tech stocks ̵
The downturn came as China lowered its currency to what was once considered to be a red line in the country's currency exchange rate against the dollar. This means that Chinese commodities are starting to look more attractive globally as prices fall against the dollar. It can also trigger a wave of currency valuations and protectionist measures across the globe – further exerting pressure on global economic growth.
Stocks continued to feel the pinch of the threat that President Donald Trump would make up for his threat to impose new tariffs on China goods from September 1, 2019. These prices are expected to take a bite of everyday consumer goods and clothing, something which adversely affects technology companies.
The big concern for these technology companies is the looming threat of this US tariff extension If these tariffs come into force, it will have significant consequences in these companies' domestic markets.
"Provided that smartphones, tablets, smartwatches and computer systems are not categorically excluded from the final $ 300B portion, we expect that this will have a significant impact on Apple hardware product revenue," Cowen & Co. analysts wrote in a note cited by CNBC .