Trade war's losers could include microchips, energy, banks
Posted August 18, 2019 7:00 am
NEW YORK (AP) - Investors concerned about the U.S.-China trade war are worrying about more than just those companies that do lots of business with China.
They are also starting to consider the risks to businesses that have few if any ties to that country. The result has been a blow to much of the U.S. stock market.
Among the vulnerable companies are energy providers, banks, microchip makers and industrial manufacturers.
The damage has been widespread since President Donald Trump shocked investors on Aug. 1 by saying he planned to soon extend tariffs across virtually all Chinese imports.
All but 2% of the stocks in the S&P 500 fell on Aug. 5, after China let its currency devalue to its lowest level in a decade.
FILE - In this Aug. 12, 2019, file photo trader David Fox works on the floor of the New York Stock Exchange. Stocks of companies that do lots of business with China are obvious targets to sell when trade worries rise, and theyâve lagged sharply behind the rest of the market whenever President Donald Trump sends out a tariff tweet. But investors are also looking way beyond these first-order effects, as they pick out which stocks look most vulnerable to the trade war. (AP Photo/Richard Drew, File)
The Associated Press
FILE - In this Jan. 28, 2019, file photo the logo for Caterpillar appears above a trading post on the floor of the New York Stock Exchange. A knee-jerk reaction in the market is to sell big industrial companies whenever trade worries rise. The temptation makes sense given how global the companies are, but it may be misguided, said Stephen Volkmann, an equity analyst at Jefferies who covers machinery and industrial companies. (AP Photo/Richard Drew, File)
The Associated Press
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