U.S. President Trump and Chinese President Xi Jinping concluded their summit on Friday without a breakthrough. U.S. Trade Representative Jamieson Greer confirmed that relaxing semiconductor export controls was not a major topic of discussion. This outcome dashed market hopes for eased trade tensions that had fueled a recent sector rally.
The Nasdaq Composite fell sharply as investors sold off information technology holdings. Semiconductor and AI-related stocks led the decline as traders unwound optimistic positions. Shares of Intel, AMD, and Nvidia dropped amid renewed uncertainty over Chinese market access and global supply chains. The lack of progress forced a broad reassessment of geopolitical risk across the technology sector.