The semiconductor sector is taking a hit Monday, after China's government told some technology-product makers not to use memory chips made by Micron Technology Inc. (MU), citing security risks. China's call comes after it had warned of consequences after the U.S., Europe and Japan reduced China's access to advanced chipmaking and other technology that might be used in weapons. The VanEck Semiconductor exchange-traded fund (SMH) slumped 1.0% in premarket trading, with 18 of the 22 components that have traded ahead of the open losing ground. Micron's stock fell 5.5% to pace the losers. Among other more-active components, shares of Nvidia Corp. (NVDA) dropped1.2%, Advanced Micro Devices Inc. (AMD) shed 1.5%, Intel Corp. (INTC) gave up 0.6% and Qualcomm Inc. (QCOM) were down 1.0%. The selloff comes as futures for the S&P 500 edged down less than 0.1%.
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(END) Dow Jones Newswires
May 22, 2023 06:46 ET (10:46 GMT)
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