Tag: Standard&Poor’s 500-Stock Index

Chip Stocks Tumble on A.I. Spending Fears and Rising Chinese Competition

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Semiconductor stocks dropped on Tuesday as fears of runaway artificial intelligence spending converged with a growing threat from Chinese rivals to the biggest players in the memory chip industry. South Korea’s benchmark stock market, home to some highly leveraged bets on the semiconductor industry, tumbled, led by steep losses in Samsung Electronics and SK Hynix, the world’s two leading memory chip makers. The sell-off followed Chinese media reports that China’s CXMT had unveiled a breakthrough in chip design. Other technology stocks around the world suffered declines, with losses concentrated in…

The Heat on Treasury Secretary Scott Bessent Grows

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Andrew here. Wowsers. Wall Street is buzzing about an opinion essay in The Wall Street Journal by Stanley Druckenmiller, a billionaire investor. Druckenmiller criticized Treasury Secretary Scott Bessent’s bond buyback plan, calling it a mistake — and, worse, suggesting it’s a stab at manipulating the bond market. Remember that Druckenmiller more recently employed Kevin Warsh, now the Fed chairman, who has argued that the government should intervene less in markets, not more. Read more below. The risks of Bessent’s multifront war Treasury Secretary Scott Bessent has spent much of August…

Stocks Sink on Anxiety About Tech and A.I. Spending

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Stocks around the world tumbled on Friday, dragged down by a sell-off in the big technology companies developing artificial intelligence after signs of increasing competition from China intensified investor unease around eye-popping spending on A.I. The S&P 500 fell 1 percent, taking its loss for the week to 1.6 percent, led lower by the biggest tech companies. The tech-heavy Nasdaq Composite index declined 1.4 percent. Stock markets in China, Japan and across Europe also fell. Signs of investor concern were most apparent in the Philadelphia Semiconductor index, a benchmark for…

How Silicon Chips Rule the World

Chin@Strategy

When I first arrived in Taiwan as a college student in the summer of 1973, there was no ambiguity whatsoever about the American role on the island. Over the previous two years, President Richard M. Nixon and his national security adviser, Henry Kissinger, had opened relations with the People’s Republic of China in Beijing. But a short distance away in Taiwan, which the People’s Republic considers a breakaway province, U.S. Air Force jets soared overhead. There was a U.S. base right in Taipei, within walking distance of my favorite bookstore.…