Chinese Export Restrictions on Nvidia and AMD Hit Chip Shares | daily business investor

Dow futures fell Thursday morning, along with S&P 500 futures and Nasdaq futures, but far from pre-market lows. nvidia (NVDAAMD stock fell overnight, sending semiconductors down after they said the US government had imposed export restrictions on some chip sales to China.

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The stock market rally made a brief and weak attempt on Wednesday, with major indexes hitting resistance at the 50-day moving average before reversing lower.

China EV startups like Nio released their August sales Thursday morning.

AMD and Nvidia shares fall on China restrictions

Nvidia stock is down 4% in pre-market trading. The chip giant said in a filing filed with the Securities and Exchange Commission on Wednesday evening that the US government has imposed new licensing requirements blocking some sales of advanced data center chips to China and Russia. Nvidia said the United States was expressing concerns about “end military use.” Nvidia, which does not currently sell products to Russia, said the restrictions could affect $400 million in sales to China.

The US government is placing increasing restrictions on China’s advanced chip technology. Beijing has responded to the new export restrictions, saying the United States is trying to impose a technical blockade on China.

Nvidia competitor Advanced Micro Devices (AMD) reported a similar US notice about China selling GPUs using artificial intelligence. AMD stock is down more than 2% in early trading. Taiwan’s semiconductor industry (TSM), which makes Nvidia chips, is down 2%.

The SMH ETF, of which the three chipmakers are a major part, is down about 2%. Several other chip stocks fell modestly in the wake of the Nvidia and AMD news.

pure storage (PSGOvernight earnings. PSTG stock jumped on better-than-expected earnings as well as revenue guidance. Shares fell 1.8% to 28.97 on Wednesday, to close above the 200-day line. PSTG stock may test a buy point of 31.62 from cup with handle Base.

China sales EV

Early Thursday, Chinese auto start New (NIO), Lee Otto (LI) And the XPeng Motors (XPEV) will report the delivery data for August. Giant EV and battery BYD (BYDDF) Most likely report on Friday or Saturday. Nio, along with shares of giant Li Auto, Xpeng, BYD and EV Tesla (TSLA) now struggling.

The new US ban on some Nvidia and AMD chip sales could have an impact on Chinese electric car makers, especially those with self-driving or driver assistance efforts.

Dow jones futures contracts today

Dow Jones futures are down 0.3% against fair value. S&P 500 futures fell 0.5%, Nasdaq 100 futures fell 0.7%, as AMD and Nvidia stocks and chips overall weighed on S&P 500 and Nasdaq futures. Futures pulled back from overnight lows, but started sliding again.

The 10-year Treasury yield jumped 9 basis points to 3.22%.

Crude oil lost more than 1% and copper sank nearly 2%.

Meanwhile, Chengdu, the capital of Sichuan Province in southwest China, is locking up its 21 million residents due to COVID cases.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

As the market rally weakens, investors should be wary of new purchases and work to reduce exposure. But they should look for potential leaders for their watch lists.

Energy Enphase (ENPH), Bindudu (PDD) and NBIX are all well combined, with Lines of relative force At the height of 2022.

Enphase Energy and PSTG are on List of 50 IBD. ENPH stock is also on file IBD Big Cap 20. Neurobiological Sciences (NBIXIt was Wednesday IBD stock today.

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stock market rise

The stock market rally attempted a recovery Wednesday morning, but the major indexes fell quickly, closing at session lows.

The Dow Jones Industrial Average lost 0.9% on Wednesday stock market trading. The S&P 500 fell 0.8%. The Nasdaq Composite and Russell 2000 Index fell 0.6%.

US crude oil futures fell 2.3 percent to $89.55 a barrel.

The 10-year Treasury yield rose 2 basis points to 3.13%.

between the Best ETFsThe Innovator IBD 50 ETF (fifty) decreased by 0.4%. iShares Expanded Technology and Software Fund (ETF)IGV) and VanEck Vectors Semiconductor ETF)SMH) decreased by 0.7%. TSM, Nvidia, and AMD stocks are major SMH holdings.

SPDR S&P Metals & Mining ETF (XME) decreased by 0.8%. SPDR Specific Energy Fund (SPDR ETF)XLE) lost 0.9%. SPDR Healthcare Sector Selection Fund (XLV) decreased 0.6%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) fell 0.1% while the ARK Genomics ETF (ARKG) rose 1.3%. Tesla shares are principal ownership via Ark Invest’s ETFs. Cathie Wood’s Ark also owns some shares of Nio and BYD.

Top 5 Chinese stocks to watch right now

China sales EV

Nio, Li Auto and XPeng reported August deliveries ahead of Thursday’s opening.

Nio delivered 10,677 vehicles in August, up 82% over the previous year and up 6% over July. That includes some ES8 SUVs, which began deliveries on August 28.

Nio’s stock is down 2% before Thursday’s opening. Shares rose 0.6% to 19.95 on Wednesday, hovering below the 50-day line. Nio is making 24.53 key low buy points which would imply a break of the 200 day line.

LI delivered shares of only 4,577 hybrid SUVs, down 56% from July and 52% from a year earlier. Upcoming vehicles may have reduced demand for the current Li One hybrid. The L9 hybrid SUV began deliveries on August 30, with the L8 arriving in November.

Li Auto sank 2% before opening. Shares slipped 0.1% to 28.77 on Wednesday, again hitting the 200-day line resistance.

XPeng deliveries reached 9,578, up 96% over the previous year but down 17% compared to July. Xpeng will get its new SUV, the G9, in the fourth quarter. XPEV stock was down 2% Thursday. Shares rose 1.4% on Wednesday to 18.52 after hitting a 22-month low on Tuesday.

BYD stock

In the meantime, BYD is likely to announce August sales on Friday or Saturday. July sales of electric and plug-in hybrid vehicles rose 222% from a year earlier to 162,350. There are indications that BYD will set another record in August.

On Monday, BYD announced first-half profit tripled from a year earlier, with sales increasing by 60%. This led to a slight rise in the stock.

But BYD stock fell 7.8% on Tuesday, followed by a 4.35% loss to 30.75 on Wednesday. Shares of the electric and battery car giant fell below the 200-day streak after hitting 43.61 on June 28.

Warren Buffett Berkshire Hathaway (BRKB) on Tuesday announced the sale of 1.33 million shares of H stock on August 24 in Hong Kong, less than 1% of its large stake in BYD shares. Berkshire still owns just under 8% of BYD, but investors fear it will continue to sell shares.

Tesla Stock

Tesla did not have China sales, but a trade official noted that Shanghai’s production reached a near record high of 77,000 in July. Industry data shows that domestic sales exceeded 30 thousand in August, excluding exports to Europe and elsewhere. The most complete industry data for Tesla will come later in September.

Shares fell 1% before the opening, close to the 50-day line. Tesla stock fell 0.75% to 275.61 on Wednesday. Stocks are dropping from the 200-day and 21-day moving averages.

Tesla vs. BYD: Which EV giant is the best one to buy?

Market Rise Analysis

The stock market rally doesn’t show much fighting. Major indexes rallied on Wednesday morning, but quickly hit a wall at the 50-day moving average. They pulled back, eventually closing at session lows.

The Russell 2000 and S&P 400 MidCap both fell back just over the 50-day streak, although they finished slightly below their 10-week average.

A return above the 50-day line is important for the Nasdaq, but it certainly wouldn’t be a completely clear signal for the bulls. On the other hand, it won’t take much of a pullback to push the tottering market rally towards a correction.

The US ban on Nvidia and AMD chip sales will affect the semiconductor sector on Thursday. Software names, especially high-value growth, are under pressure like octa (OKTA), MongoDB (MDB) And the viva (VEEV) fell more than 10% after earnings.

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What are you doing now

The market rally is still under pressure at the moment, but the weakness is evident. Investors should look to take profits and cut losses rather than add exposure.

Work on your watch lists. Keep looking for potential settings, but be sure to keep track of high-quality stocks with high relative strength, even if the charts haven’t matured yet. But stocks can outperform in a weak market until they suddenly falter. Relative winners can still be absolute losers.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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200-day average: the last support line?