The selloff in the Nasdaq on Wednesday, more specifically in semiconductor stocks, has added a relatively new wrinkle to what has been an unexpectedly exceptional year for stocks: political risk.
And by that I do not mean the outcome of the 2024 presidential election , per se, but the risk of trial balloons being floated for the next several months leading up to the election.
Two news items on Wednesday rocked the chip stocks as the Biden administration is reportedly considering much tighter constraints on chip sales to China .
Competing proposals We've already heard of some of the potential policy prescriptions that either a Biden or Trump administration might pursue beginning in 2025.
Some may never see the light of day depending, not only on the outcome of the presidential election, but also on the composition of the next Congress.
Persons:
Biden, Donald Trump, Trump
Organizations:
Nasdaq, U.S, Biden, Federal
Locations:
China, Taiwan, Trump, U.S