Wall Street extended its gains, and the U.S has begun an economic dialogue with Japan regarding the semiconductor industry
Nasdaq and S&P extended rebounds this Friday morning, the tech-heavy Nasdaq index rose by 0.6%, and S&P increased by 0.55%. The Dow Jones indexes saw a minor increase estimated at 0.2%. Despite inflationary pressure, labor shortages, and other indicators, Wall Street posted some new gains this week. This, in turn, has affected the tech stock premarket prices.
According to recent data, tech stock prices posted an increase on Friday, July 29th, premarket.
Apple stock jumped by 2.5% in the premarket after posting positive third-quarter earnings results. Amazon’s share price also saw an increase of 11.1%. Mobile Exxon stocks rose by 2.6% days after oil posted its biggest quarterly profits. Other stocks, however, have seen their prices fall, including Intell, which is down 11.7%, and Roku, which is down 21.2%.
Tech stocks performed very well in this quarter despite fears of revenue declines due to supply chain distribution issues.
The Ukraine invasion has been challenging for the international supply chain and the chip maker industry. One good example of that is today’s American Osram stock market crash. Ams Osram’s stock plummeted on Friday morning after the company reported disappointing second-quarter earnings. The company earlier reported that it suffers from a supply chain chip maker shortage.
The U.S. and its allies know what the semiconductor industry means for the tech industry and growth. As of today, the U.S. and Japan both agreed to join a meeting and research dialogue to push back against Chinese and Russian domination over the domestic market.
The geopolitical tension between China and Taiwan is growing, and the US is concerned about the impact on the chipmaker industry. Last Tuesday, Chinese President Xi Jinping stated that US meddling in Chinese affairs is a direct act of aggression. He added that playing with Twain is playing with fire. This note was interpreted by US experts as a threat or an aggressive act by the Chinese leader.
Taiwan is considered one of the globe’s semiconductor suppliers, but if China took over the country that will give China a significant advantage over the U.S.
In the past two years, Twan represented the vast majority of the 10-nanometer chips, but now it has all turned against the U.S interest since China is moving to claim Taiwan as a Chinese state.
Japan’s Hayashi says that if the U.S and Japan have to work on mutual interest and join forces. He also added that to succeed in this economic dialogue, it is essential to discuss foreign policy and economic policy as a united policy rather than discussing them individually. The purpose of an economic dialogue is to find fast and effective solutions that could compete against the Russian and Chinese economic forces.