Stock Market Today: Semis Get Slammed and Blue Chips Bounce

The potential for more curbs on tech sales to China set off a rotation into blue chips.

(Image credit: Getty Images

Stocks closed mixed as blue chips hit another record high but tech names tumbled on the potential for tighter U.S. restrictions on chip sales to China.

The U.S. presidential campaign season is already sending shockwaves through capital markets, notes José Torres, senior economist at Interactive Brokers.

"Semiconductor shares are getting hammered on news that Trump isn't happy with the technology sector's warmth toward Beijing," Torres writes in a note to clients. "Meanwhile, President Biden is rushing to potentially implement the harshest of penalties to chip firms that trade with China to toughen up on the geopolitical front and possibly shore up his dwindling odds of reelection."

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