Weekly Financial Market Update - May 24, 2019
May 28, 2019
The trade dispute between the U.S. and China escalated further last week when President Trump issued an export ban against Chinese telecommunications giant Huawei Technologies. The export ban prevents U.S. companies from supplying Huawei with their crucial technology. The semiconductor industry’s high exposure to Huawei led to those stocks getting hit especially hard as seen by the S&P 500 semiconductor industry falling over 5%.
Chinese President Xi Jinping responded by publicizing his visit to a rare earth metal mine to highlight China’s position as the world’s largest supplier of these elements. This visit demonstrated China’s ability to restrict exports of the metals as a trade weapon, as it did with Japan in 2010. Many U.S. industries including technology, transportation, and defense rely on importing these metals from China.
Learn more about last week's developments the impact of trade tensions on the economy and notes from the minutes of the Federal open Market Committee's (FOMC) May meeting in our Weekly Financial Market Update.