The Dow almost touched 40,000 last week, but Monday morning began much quieter. The news that China is blocking the use of Intel and AMD chips in government computers sent shares in both companies down.
The Dow Jones Industrial Average and other major indexes dropped, in a slow start to the week.
China cracks down on chips
Amid the ongoing “chip war” between the U.S. and China, a new turn came on Sunday after a report said that China will ban chips of Intel and Advanced Micro Devices, or AMD. As a result, Intel dropped 2%, trading at $41. AMD declined 0.33% and recovered later in the morning, trading at $180 at the time of writing.
Meanwhile, AI chips such as Super Micro Computer and Micron Technology were among the best-performing stocks, and both surged above 8% on Monday. Micron Technology’s stock price reached an all-time high, hovering around $117.82.
Take-Two Interactive Software shares dropped over 6% to $143 on Monday, after outperforming last week.
United Airlines crashes after FAA increases oversight
United Airlines stocks declined 5% after the Federal Aviation Administration (FAA) announced it would increase its oversight of the airline following a series of safety issues this year. The agency wants to know if the airline is in compliance with safety regulations. The stock is trading at $44 at the time of writing.
On the other hand, Boeing CEO Dave Calhoun’s announcement to step down by the end of the year, in the wake of ongoing safety problems, caused its stock to jump 1%. Currently, it stands at $190.
Among the major indexes, the Dow moved down 0.3% to 39,358.74 in the morning, while the S&P 500 dropped 0.13%. The tech-heavy Nasdaq fell 0.07% after the opening bell.