Stock Market Today: Techs sag on report U.S. will limit chip exports
Stock Market Today: Techs sag on report U.S. will limit chip exports originally appeared on TheStreet.
Updated 11:45 a.m. EDT
Stocks have lost their early gains on reports the Trump administration is planning to revoke waivers that allow chip companies to use American chipmaking technology in China.
The Philadelphia Semiconductor Index and the VanEck Semiconductor ETF () were both off 1.3%.
The catalyst was a Wall Street Journal report that a top Commerce Department official has told chip manufacturers like Taiwan Semiconductor () he wants to revoke waivers that gave them blanket permission to use American technology at their plants in China.
Instead, the Commerce Department would require export licenses on each instance of using U.S. technology in China, The Journal reported.
The idea, if enacted, would affect U.S. trade negotiations with China and could boost costs for the chipmakers.
As a result, the Standard & Poor's 500 Index was flat at 5,980. It had been as high as 6,018 early in the day. The Nasdaq-100 Index, which includes key chipmakers, was down 43 points to 21,677. It had been as high as 21,902.
Taiwan Semi was off 1.7% to $210.
The Dow Jones Industrial Average was still up 159 points to 42,331.
Updated 10:20 a.m. EDT
Stocks jumped at the open, then faded slightly as investors seemed relieved that the U.S. was holding off on deciding whether to join Israel's war against Iran.
At 10 a.m. EDT the Standard& Poor's 500 Index had climbed 16 points to 5,997. The Dow Jones Industrial Average had jumped 167 points to 42,339.
💸💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💸
The Nasdaq Composite Index had risen 32 points to 19578, and the Nasdaq-100 index was up 53 points to 21,772.
President Trump said Thursday he expected to decide the question within two weeks.
Trump frequently delays decisions like these. His Republican Party has split between isolationists, who form the core of the MAGA side, and hawks, who favor attacking Iran to disable the country's nuclear ambitions.
Crude oil and gold prices were lower as war fever ebbed. Crude was off 52 cents to $74.60. Gold was down $28 to $3,380.
Silver, which hit a 52-week high of $37.41 per ounce on Wednesday, had fallen 98 cents to $35.94 but was still up 22.2% for the year.
It's not easy being Federal Reserve Chairman Jerome Powell.
A day after the Fed held interest rates steady, President Trump was raging about the decision. Bill Pulte, chairman of the Federal Housing Finance Agency, was calling on the Fed chairman to cut rates or resign.
Christopher Waller, a Fed governor (and believed to covet the chairman's job), told CNBC Friday he thinks a rate cut could come early as the Fed's July 29-30 meeting
Powell's term as chairman doesn't end until May 2026, and Trump has basically guaranteed he won't be offered a third term.The battle has to do with how the Fed is affecting mortgage rates. Currently, a 30-year mortgage will cost about 6.8% to 6.9%. Housing data are generally weak, and building optimism is seriously depressed.
While Powell is the de facto leader of the Federal Open Market Committee, the Fed's rate-making body, he is only one of more than a dozen central bank officials who vote on the bank's interest rate moves.
Even so, Trump has raged at Powell for more than seven years after the president elevated him to lead the Fed in 2017.
Investors seemed relieved early Friday after President Donald Trump said he'd decide within two weeks whether to commit America to join Israel in its war against Iraq.
Oil prices were falling with crude oil down 39 cents to $73.11.
💵💰💰💵
Trump's decision seemed to surprise many after he'd called for "unconditional surrender" from Iran over its nuclear aspirations.
But Trump ally Steve Bannon, a vocal opponent of going to war, visited the White House on Thursday.
Futures trading suggests the Standard& Poor's 500 Index will open 8 points higher. The Dow Jones Industrial Average was looking at an opening increase of about 67 points, and Nasdaq-100 futures were up about 50 points.
U.S. markets had been closed Thursday for the Juneteenth holiday.
Shares of Accenture () were off 2% preopen even as the consulting giant reported better-than-expected earnings and revenue. Barron's cited weak bookings and leadership changes for the decline.
Shares of supermarket operator Kroger () were up 1% to $66.25. .
Building-materials supplier GMS () shares were up 27% premarket to $101 as a bidding war for the company erupted between Home Depot () and Brad Jacobs' QXO. GMS has a market capitalization of about $3.1 billion. Wall Street believes the bidding is already at $5 billion.
The 10-year note yield was up slightly at 4.436%.Stock Market Today: Techs sag on report U.S. will limit chip exports first appeared on TheStreet on Jun 20, 2025
This story was originally reported by TheStreet on Jun 20, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
16 minutes ago
- San Francisco Chronicle
How Senate Republicans want to change the tax breaks in Trump's big bill
WASHINGTON (AP) — House and Senate Republicans are taking slightly different approaches when it comes to the tax cuts that lawmakers are looking to include in their massive tax and spending cuts bill. Republicans in the two chambers don't agree on the size of a deduction for state and local taxes. And they are at odds on such things as allowing people to use their health savings accounts to help pay for their gym membership, or whether electric vehicle and hybrid owners should have to pay an annual fee. The House passed its version shortly before Memorial Day. Now the Senate is looking to pass its version. While the two bills are similar on the major tax provisions, how they work out their differences in the coming weeks will determine how quickly they can get a final product over the finish line. President Donald Trump is pushing to have the legislation on his desk by July 4th. Here's a look at some of the key differences between the two bills: Tax break for families The child tax credit currently stands at $2,000 per child. The House bill temporarily boosts the child tax credit to $2,500 for the 2025 through 2028 tax years, roughly the length of President Donald Trump's second term. It also indexes the credit amount for inflation beginning in 2027. The Senate bill provides a smaller, initial bump-up to $2,200, but the bump is permanent, with the credit amount indexed for inflation beginning next year. Trump campaign promises Trump promised on the campaign trail that he would seek to end income taxes on tips, overtime and Social Security benefits. Also, he would give car buyers a new tax break by allowing them to deduct the interest paid on auto loans. The House and Senate bills incorporate those promises with temporary deductions lasting from the 2025 through 2028 tax years, but with some differences. The House bill creates a deduction on tips for those working in jobs that have customarily received tips. The House also provides for a deduction for overtime that's equal to the amount of OT a worker has earned. The Senate bill comes with more restrictions. The deduction for tips is limited to $25,000 per taxpayer and the deduction for overtime is limited to $12,500 per taxpayer. The House and Senate bills both provide a deduction of up to $10,000 for interest paid on loans for vehicles made in the United States. And on Social Security, the bills don't directly touch the program. Instead, they grant a larger tax deduction for Americans age 65 and older. The House sets the deduction at $4,000. The Senate sets it at $6,000. Both chambers include income limits over which the new deductions begin to phase out. More SALT The caps on state and local tax deductions, known in Washington as the SALT cap, now stand at $10,000. The House bill, in a bid to win over Republicans from New York, California and New Jersey, lifts the cap to $40,000 per household with incomes of less than $500,000. The credit phases down for households earning more than $500,000. The Senate bill keeps the cap at $10,000. That's a non-starter in the House, but Republicans in the two chambers will look to negotiate a final number over the coming weeks that both sides can accept. Medicaid providers The House bill prohibits states from establishing new provider taxes or increasing existing taxes. These are taxes that Medicaid providers, such as hospitals, pay to help states finance their share of Medicaid costs. In turn, the taxes allow states to receive increased federal matching funds while generally holding providers harmless through higher reimbursements that offset the taxes paid. Such taxes now are effectively capped at 6%. The Senate looks to gradually lower that threshold for states that have expanded their Medicaid populations under the Affordable Care Act, or 'Obamacare,' until it reaches 3.5% in 2031, with exceptions for nursing homes and intermediate care facilities. Industry groups have warned that limiting the ability of states to tax providers may lead to some states making significant cuts to their Medicaid programs as they make up for the lost revenue in other ways. The Medicaid provision could be a flashpoint in the coming House and Senate negotiations. Sen. Josh Hawley, R-Mo., was highly critical of the proposed Senate changes. 'This needs a lot of work. It's really concerning and I'm really surprised by it,' he said. 'Rural hospitals are going to be in bad shape.' Tax breaks for business The House bill would allow companies for five years to fully deduct equipment purchases and domestic research and development expenses. The Senate bill includes no sunset, making the tax breaks permanent, which was a key priority of powerful trade groups such as the U.S. Chamber of Commerce. Clean energy tax credits Republicans in both chambers are looking to scale back the clean energy tax credits enacted through then-President Joe Biden's climate law. It aimed to boost the nation's transition away from planet-warming greenhouse gas emissions toward renewable energy such as wind and solar power. Under the Senate bill, the tax credits for clean energy and home energy efficiency would still be phased out, but less quickly than under the House bill. Still, advocacy groups fear that the final measure will threaten hundreds of thousands of jobs and drive up household energy costs. Odds and ends The House bill would allow millions of Americans to use their health savings accounts to pay for gym memberships, with a cap of $500 for single taxpayers and $1,000 for joint filers. The Senate bill doesn't include such a provision. The House reinstates a charitable deduction for non-itemizers of $150 per taxpayer. The Senate bill increases that deduction for donations to $1,000 per taxpayer. Republicans in the House bill included a new annual fee of $250 for EV owners and $100 for hybrid owners that would be collected by state motor vehicle departments. The Senate bill excludes the proposed fees.
San Francisco Chronicle
17 minutes ago
- San Francisco Chronicle
The US commemorates 250th anniversary of the 'great American battle,' the Battle of Bunker Hill
NEW YORK (AP) — As the U.S. marks the 250th anniversary of the Battle of Bunker Hill, it might take a moment — or more — to remember why. Start with the very name. 'There's something percussive about it: Battle of Bunker Hill,' says prize-winning historian Nathaniel Philbrick, whose 'Bunker Hill: A City, A Siege, A Revolution' was published in 2013. 'What actually happened probably gets hazy for people outside of the Boston area, but it's part of our collective memory and imagination.' 'Few 'ordinary' Americans could tell you that Freeman's Farm, or Germantown, or Guilford Court House were battles,' says Paul Lockhart, a professor of history at Wright University and author of a Bunker Hill book, 'The Whites of Their Eyes," which came out in 2011. "But they can say that Gettysburg,D-Day, and Bunker Hill were battles.' Bunker Hill, Lockhart adds, 'is the great American battle, if there is such a thing.' Much of the world looks to the Battles of Lexington and Concord, fought in Massachusetts on April 19, 1775, as the start of the American Revolution. But Philbrick, Lockhart and others cite Bunker Hill and June 17 as the real beginning, the first time British and rebel forces faced off in sustained conflict over a specific piece of territory. Bunker Hill was an early showcase for two long-running themes in American history — improvisation and how an inspired band of militias could hold their own against an army of professionals. 'It was a horrific bloodletting, and provided the British high command with proof that the Americans were going to be a lot more difficult to subdue than had been hoped,' says the Pulitzer Prize-winning historian Rick Atkinson, whose second volume of a planned trilogy on the Revolution, 'The Fate of the Day,' was published in April. The battle was born in part out of error; rebels were seeking to hold off a possible British attack by fortifying Bunker Hill, a 110-foot-high (34-meter-high) peak in Charlestown across the Charles River from British-occupied Boston. But for reasons still unclear, they instead armed a smaller and more vulnerable ridge known as Breed's Hill, 'within cannon shot of Boston,' Philbrick says. "The British felt they had no choice but to attack and seize the American fort.' Abigail Adams, wife of future President John Adams, and son John Quincy Adams, also a future president, were among thousands in the Boston area who looked on from rooftops, steeples and trees as the two sides fought with primal rage. A British officer would write home about the 'shocking carnage' left behind, a sight 'that never will be erased out of my mind 'till the day of my death.' The rebels were often undisciplined and disorganized and they were running out of gunpowder. The battle ended with them in retreat, but not before the British had lost more than 200 soldiers and sustained more than 1,000 casualties, compared to some 450 colonial casualties and the destruction of hundreds of homes, businesses and other buildings in Charlestown. Bunker Hill would become characteristic of so much of the Revolutionary War: a technical defeat that was a victory because the British needed to win decisively and the rebels needed only not to lose decisively. 'Nobody now entertains a doubt but that we are able to cope with the whole force of Great Britain, if we are but willing to exert ourselves,' Thomas Jefferson wrote to a friend in early July. 'As our enemies have found we can reason like men, now let us show them we can fight like men also.'
Associated Press
23 minutes ago
- Associated Press
Diplomatic breakthrough elusive as Israel-Iran war stretches into second week
TEL AVIV, Israel (AP) — Hours of talks aimed at de-escalating fighting between Israel and Iran failed to produce a diplomatic breakthrough as the war entered its second week with a fresh round of strikes between the two adversaries. European ministers and Iran's top diplomat met for four hours Friday in Geneva, as President Donald Trump continued to weigh U.S. military involvement and worries rose over potential strikes on nuclear reactors. European officials expressed hope for future negotiations, and Iranian Foreign Minister Abbas Araghchi said he was open to further dialogue while emphasizing that Tehran had no interest in negotiating with the U.S. while Israel continued attacking. 'Iran is ready to consider diplomacy if aggression ceases and the aggressor is held accountable for its committed crimes,' he told reporters. No date was set for the next round of talks. Israeli Prime Minister Benjamin Netanyahu said Israel's military operation in Iran would continue 'for as long as it takes' to eliminate what he called the existential threat of Iran's nuclear program and arsenal of ballistic missiles. Israel's top general echoed the warning, saying the Israeli military was ready 'for a prolonged campaign.' But Netanyahu's goal could be out of reach without U.S. help. Iran's underground Fordo uranium enrichment facility is considered to be out of reach to all but America's 'bunker-buster' bombs. Trump said he would put off deciding whether to join Israel's air campaign against Iran for up to two weeks. The war between Israel and Iran erupted June 13, with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based Iranian human rights group. Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli army estimates. Most have been shot down by Israel's multitiered air defenses, but at least 24 people in Israel have been killed and hundreds wounded. Worries rise over the perils of attacking Iran's nuclear reactors Addressing an emergency meeting of the U.N. Security Council, the head of the International Atomic Energy Agency warned against attacks on Iran's nuclear reactors, particularly its only commercial nuclear power plant in the southern city of Bushehr. 'I want to make it absolutely and completely clear: In case of an attack on the Bushehr nuclear power plant, a direct hit would result in a very high release of radioactivity to the environment,' said Rafael Grossi, chief of the U.N. nuclear watchdog. 'This is the nuclear site in Iran where the consequences could be most serious.' Israel has not targeted Iran's nuclear reactors, instead focusing its strikes on the main uranium enrichment facility at Natanz, centrifuge workshops near Tehran, laboratories in Isfahan and the country's Arak heavy water reactor southwest of the capital. Grossi has warned repeatedly that such sites should not be military targets. After initially reporting no visible damage from Israel's Thursday strikes on the Arak heavy water reactor, the IAEA on Friday said it had assessed 'key buildings at the facility were damaged,' including the distillation unit. The reactor was not operational and contained no nuclear material, so the damage posed no risk of contamination, the watchdog said. Iran previously agreed to limit its uranium enrichment and allow international inspectors access to its nuclear sites under a 2015 deal with the U.S., France, China, Russia, Britain and Germany in exchange for sanctions relief. But after Trump pulled the U.S. unilaterally out of the deal during his first term, Iran began enriching uranium up to 60% — a short, technical step away from weapons-grade levels of 90% — and restricting access to its nuclear facilities. Iran has long maintained its nuclear program is for peaceful purposes, but it is the only non-nuclear-weapon state to enrich uranium up to 60%. Israel is widely believed to be the only Middle Eastern country with a nuclear weapons program but has never acknowledged it. Israel says 'difficult days' ahead Israel said its warplanes hit dozens of military targets across Iran on Friday, including missile-manufacturing facilities, while an Iranian missile hit Israel's northern city of Haifa, sending plumes of smoke billowing over the Mediterranean port and wounding at least 31 people. Iranian state media reported explosions from Israeli strikes in an industrial area of Rasht, along the coast of the Caspian Sea. Israel's military had warned Iranians to evacuate the area around Rasht's Industrial City, southwest of the city's downtown. But with Iran's internet shut off — now for more than 48 hours — it's unclear how many people could see the message. The Israeli military believes it has destroyed most of Iran's ballistic missile launchers, contributing to the steady decline in Iranian attacks. But several of the roughly three dozen missiles that Israel said Iran fired on Friday slipped through the country's aerial defense system, setting off air-raid sirens across the country and sending shrapnel flying into a residential area in the southern city of Beersheba, a frequent target of Iranian missiles where a hospital was hit Thursday.
