Investing.com Stocks abruptly moved into the red Friday afternoon on a Bloomberg News report that the Trump Administration is discussing ways to limit U.S. investment dollars from flowing into China.
The S&P 500 was 0.5% lower by 1:20 PM ET (17:20 GMT). The Dow industrials were off 0.24% after falling as many as 107 points. The tech-heavy Nasdaq Composite was off about 1.1%. Many tech stocks depend on sales to Chinese companies.
The Bloomberg report said the Trump Administration is considering a number of moves including delisting Chinese companies from U.S. stock exchanges and limiting Americans’ exposure to the Chinese market through government pension funds. That could hit companies like Alibaba Group Holdings (NYSE:BABA), which has a market cap of some $430 billion. Alibaba ADRs, listed on the New York Stock Exchange, were down 5.5%.
The discussions are occurring as Washington and Beijing negotiate a potential truce in their trade war that's weighed on the world’s two biggest economies and investors for more than a year