Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Dow Jones down 85 points after Trump Administration blacklists Huawei

The Dow Jones is down after the Huawei ban affects the stocks of many US tech corporations.

US trader after Dow Jones down after Huawei ban Source: Bloomberg

The Dow Jones is down by 85 points after the US banned Chinese telecommunications company Huawei from conducting business with American corporations. This latest extension of the US-China trade impasse caused the stocks of many US tech companies that partner with Huawei like Intel to plummet.

Why did the Trump Administration ban Huawei from the US?

US President, Donald Trump, perceived Huawei as an ongoing national security threat to the US. The US Commerce Department explained why the Trump Administration recently placed Huawei on a trade blacklist.

‘This action stems from information available to the [ US Commerce] Department that provides a reasonable basis to conclude that Huawei is engaged in activities that are contrary to US national security or foreign policy interest,’ said the US Commerce Department.

How is the Huawei ban affecting American tech companies?

Many American tech companies had to halt its business dealings with Huawei, like Google. Google ended its work with Huawei that required the transfer of software and hardware. Google noted that it was complying with the Trump Administration’s order to ban Huawei imports.

‘We are complying with the order and reviewing the implications,’ said a Google spokesperson.

Google also noted that because of the ban, Huawei phones in the future will only be able to use Android’s public version and not Google's apps like YouTube.

‘Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,’ said the spokesperson.

What’s next for the Dow Jones and tech companies?

The Huawei trade ban and stalled US-China trade talks may continue to cause concern among investors. Willie Delwiche, investment strategist at R.W. Baird, noted that if the trade impasse lasts, there could be a longer negative impact on the US stock market.

‘At the margin, the global trade situation is deteriorating, and that increases uncertainty. These trade concerns are not going away,’ said Delwiche.

Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, said that the Huawei ban could impact tech companies’ future earnings.

‘The political risk now has become a business risk. This could affect in a meaningful way earnings expectations for many tech names, ‘ said Morganlander.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.