Chinese Chip Report Keeps Spooking Techs; Lenovo, Apple Fall Midday
Investing.com - PC maker Lenovo fell sharply in midday trading as investors worried that a report about Chinese spying chips being planted in tech company systems would dent demand for Chinese tech products.
Bloomberg reported on Thursday that tiny spy chips from China had infiltrated the supply chains of U.S. companies, including Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN).
Both Apple and Amazon have denied the report.
But that led to concerns that consumer and businesses would avoid Chinese technology until there was more visibility on the issue.
Lenovo (OTC:LNVGF) tumbled about 10% at 12:05 PM ET (16:05 GMT), while Chinese telecom equipment company ZTE (OTC:ZTCOY) slumped 10% as well.
Apple fell about 1.5%, while Amazon was down about 1.6%.
The S&P Information Technology sector index was the worst-performing of the major sectors, slipping about 1.6%.
A big drag on the index was laser manufacturer IPG Photonics (NASDAQ:IPGP), which plunged about 12% after the company cut third-quarter revenue guidance citing tariffs and trade battles.
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