Market Reacts to China's Retaliatory Tariffs

Intel Corporation's stock experienced a significant drop, falling as much as 7% in premarket trading this Friday. This downturn comes in the wake of China's announcement of a 34% retaliatory tariff on all US goods, set to take effect on April 10. The tariffs are a direct response to recent measures by US President Donald Trump targeting Chinese imports.

Semiconductor Sector Feels the Heat

The impact was not isolated to Intel alone. The semiconductor sector at large felt the strain, with notable companies like Nvidia and Apple seeing declines of around 4%, and Broadcom dropping by 6%. Analysts predict that these tariffs will not only increase operational costs for US chipmakers but also disrupt existing supply chains, potentially squeezing profit margins in the near term.

Intel's Stock Performance

By 6:59 am ET, Intel's shares had slightly recovered but were still down by 6.29%, trading at $21.05 in the premarket in New York.