U.S. President Trump and Chinese President Xi Jinping concluded their summit on Friday without reaching an agreement for technology investors. U.S. Trade Representative Jamieson Greer confirmed that relaxing semiconductor export controls was not a major topic of discussion.
The lack of a breakthrough dashed hopes for eased trade tensions and immediately soured market sentiment. The Nasdaq Composite fell sharply as investors triggered a significant sell-off in the information technology sector.
Semiconductor and AI-related stocks led the market decline. Shares of Intel, AMD, and Nvidia dropped as the outcome renewed uncertainty regarding access to the Chinese market.
This development forced a broad reassessment of geopolitical risks across the global tech supply chain. Investors continued to unwind optimistic positions previously built on expectations of a trade resolution.