Stocks fell on Monday as the intensifying fallout from a U.S. crackdown on Huawei pressured the technology sector.
The S&P 500 pulled back 0.9%, with the tech sector dropping 1.6%. The Nasdaq Composite fell 1.7%.
Alphabet’s Google has suspended business with Huawei that involves transferring hardware, software and other technical services. The U.S. search giant’s decision follows President Donald Trump’s administration adding Huawei to a list that required U.S. companies get a license to do business with the Chinese company. Bloomberg News also reported that companies like Intel, Qualcomm and Broadcom will not supply Huawei until further notice.
Apple added to the market’s decline, sliding more than 4%.
The moves by the U.S. government and tech companies come as China and the U.S. try to strike a deal that would end the countries’ ongoing trade war. The U.S. hiked tariffs on $200 billion worth of Chinese goods earlier this month, and China retaliated by raising levies on $60 billion worth of U.S. imports.
