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March 22, 2018, 5:06 p.m. EDT

China tech stocks gutted as Trump calls for tariffs on at least $50 billion of goods

Alibaba, Baidu, Tencent finish down more than 5% as tech is targeted

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By Wallace Witkowski, MarketWatch

Losses in Chinese tech stocks outpaced their U.S. counterparts on Thursday, with those losses holding into the close after President Donald Trump announced tariffs on tens of billions of dollars’ worth of goods from China.

On Thursday, Trump said he instructed the office of the U.S. Trade Representative to draw up a list of tariffs on Chinese products totaling at least $50 billion with an emphasis on sensitive technologies.

The subject of Chinese tariffs has rattled markets in recent days on fears that they will trigger a trade war with the world’s second-largest economy. U.S. trade groups recently urged Trump to halt the tariff plan, warning that it would trigger a chain reaction of negative consequences for the U.S. economy.

While U.S. tech stocks were having a rough day along with the broader market, as evidenced by the Technology Select Sector SPDR Fund /zigman2/quotes/207444675/composite XLK +3.38%  finishing down 2.6%, Chinese tech stocks were having an even worse day. In fact, following the tariff announcement, U.S. tech stocks saw a brief paring of losses, before sliding back down with the broader market.

U.S. shares of Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA -1.13%  closed down 5.5%, Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 +2.27%  shares fell 5% and Baidu Inc. /zigman2/quotes/209050136/composite BIDU +2.13%  U.S. shares closed down 5.6%.

In the U.S., shares of Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +3.66%  finished down 2.3%, Alphabet Inc. /zigman2/quotes/205453964/composite GOOG +4.16%   /zigman2/quotes/202490156/composite GOOGL +4.20%  fell 3.8% and Facebook Inc. /zigman2/quotes/205064656/composite FB +1.83%  shares closed down 2.7%.

In comparison, the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +3.33%  closed down 2.4%, the S&P 500 index /zigman2/quotes/210599714/realtime SPX +2.47%  fell 2.5% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.76%  dropped 2.9%.

Other big declines in U.S.-traded stocks of Chinese companies included Sina Corp. , which fell 6.8%, and Weibo Corp. /zigman2/quotes/206830028/composite WB +0.32% , which dropped 7%. JinkoSolar Holding Co. /zigman2/quotes/207601099/composite JKS -2.09% shares fell 8%, NetEase Inc. /zigman2/quotes/201683625/composite NTES +2.47% shares dropped 5.4% and Yingli Green Energy Holding Co.  shares dropped 7.2%

While not as bad as other Chinese stocks, U.S. shares of JD.com Inc. /zigman2/quotes/205122565/composite JD +1.82% , 51job Inc. and Ctrip.com International Ltd. all finished down more than 2%.

In another sign of trade friction with China, Best Buy Co. /zigman2/quotes/205918291/composite BBY +2.36%   reportedly plans to stop selling Huawei Technologies Co. phones in the U.S. Shares of Best Buy finished down 1.7%.

/zigman2/quotes/207444675/composite
US : U.S.: NYSE Arca
$ 141.46
+4.63 +3.38%
Volume: 8.14M
May 27, 2022 4:00p
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/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 93.41
-1.07 -1.13%
Volume: 26.72M
May 27, 2022 4:00p
P/E Ratio
30.47
Dividend Yield
N/A
Market Cap
$247.10 billion
Rev. per Employee
$528,633
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/zigman2/quotes/204605823/delayed
HK : Hong Kong
$ 341.80
+7.60 +2.27%
Volume: 20.76M
May 27, 2022 4:08p
P/E Ratio
13.64
Dividend Yield
0.47%
Market Cap
$3246.76 billion
Rev. per Employee
$6.03M
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/zigman2/quotes/209050136/composite
US : U.S.: Nasdaq
$ 139.09
+2.90 +2.13%
Volume: 4.57M
May 27, 2022 4:00p
P/E Ratio
30.66
Dividend Yield
N/A
Market Cap
$47.63 billion
Rev. per Employee
$424,245
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,302.93
+81.38 +3.66%
Volume: 4.68M
May 27, 2022 4:00p
P/E Ratio
55.54
Dividend Yield
N/A
Market Cap
$1171.55 billion
Rev. per Employee
$297,107
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/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 2,255.98
+90.06 +4.16%
Volume: 1.50M
May 27, 2022 4:00p
P/E Ratio
20.40
Dividend Yield
N/A
Market Cap
$1482.33 billion
Rev. per Employee
$1.72M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 2,246.33
+90.48 +4.20%
Volume: 1.90M
May 27, 2022 4:00p
P/E Ratio
20.32
Dividend Yield
N/A
Market Cap
$1482.33 billion
Rev. per Employee
$1.72M
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 195.13
+3.50 +1.83%
Volume: 22.56M
May 27, 2022 4:00p
P/E Ratio
14.75
Dividend Yield
N/A
Market Cap
$528.12 billion
Rev. per Employee
$1.66M
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
12,131.13
+390.48 +3.33%
Volume: 4.20M
May 27, 2022 5:16p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,158.24
+100.40 +2.47%
Volume: 2.17B
May 27, 2022 5:49p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,212.96
+575.77 +1.76%
Volume: 331.19M
May 27, 2022 5:49p
loading...
/zigman2/quotes/206830028/composite
US : U.S.: Nasdaq
$ 22.00
+0.07 +0.32%
Volume: 1.21M
May 27, 2022 4:00p
P/E Ratio
11.98
Dividend Yield
N/A
Market Cap
$5.36 billion
Rev. per Employee
$367,184
loading...
/zigman2/quotes/207601099/composite
US : U.S.: NYSE
$ 58.94
-1.26 -2.09%
Volume: 885,398
May 27, 2022 4:00p
P/E Ratio
66.55
Dividend Yield
N/A
Market Cap
$2.88 billion
Rev. per Employee
$239,814
loading...
/zigman2/quotes/201683625/composite
US : U.S.: Nasdaq
$ 104.00
+2.51 +2.47%
Volume: 2.42M
May 27, 2022 4:00p
P/E Ratio
26.74
Dividend Yield
1.14%
Market Cap
$63.44 billion
Rev. per Employee
$423,643
loading...
/zigman2/quotes/205122565/composite
US : U.S.: Nasdaq
$ 53.68
+0.96 +1.82%
Volume: 10.26M
May 27, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$82.25 billion
Rev. per Employee
$399,673
loading...
/zigman2/quotes/205918291/composite
US : U.S.: NYSE
$ 83.99
+1.94 +2.36%
Volume: 3.32M
May 27, 2022 4:00p
P/E Ratio
9.32
Dividend Yield
4.19%
Market Cap
$18.92 billion
Rev. per Employee
$483,533
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Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

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