Qualcomm (NASDAQ:QCOM) stock was down on Friday, despite the company not announcing any major news. So what’s behind the drop?
It looks like news of a looming trade war between the U.S. and China is causing problems for Qualcomm today. Recent reports claim that China may retaliate against restrictions from the U.S. on Huawei by targeting QCOM and other U.S. tech companies.
All of this comes from an ongoing battle the U.S. government has been having with China over Huawei. The problems started last year when the company was placed on a blacklist. The U.S. government’s concern is that the tech company can use its devices to spy for China.
The most recent news claims that the U.S. government is going to further restrict Huawei. This new restriction won’t allow the company to make use of semiconductors that are made with the help of U.S. companies, reports CNBC.
Qualcomm, like most companies, has been on a wild ride these last few months. The novel coronavirus has been shaking up the world’s economy and it’s no expectation. While that’s caused the stock to decline almost 10% year-to-date, there may still be an upside for it.
QCOM stock has steadily been rising back up following the initial blowback from the coronavirus. Unfortunately, it looks like the trade war between the U.S. and China might bring an end to that momentum. It’ll be interesting to see how this plays out in the near future.
QCOM stock was down 4.6% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
