Wall St. lends for weak opening on repression fears of crackdown on Huawei By Reuters

By Shreyashi Sanyal

(Reuters) – US stocks are expected to fall sharply on Monday as repression of US crackdown on Chinese Huawei Technologies by crackdown on key technology companies added to worries over trade war between the two countries .

Huawei's US suppliers, including Qualcomm (NASDAQ :), Micron Technology (NASDAQ 🙂 and Broadcom (NASDAQ 🙂 Inc.), sold about 4% before commercialization.

Apple's shares (NASDAQ 🙂 Inc. fell 2.9%, also prompted by a warning from HSBC that the company's rising product prices following rising tariffs in China could have "disastrous consequences" "on demand.

Huawei, the world's largest telecommunications equipment maker, was officially added to the Trump government blacklist Thursday, compounding the already fierce trade war, as China on Monday accused the United States of have "extravagant expectations" for a trade agreement.

"For many of these technology companies, there is no bigger market than China and it is feared that it can not slow down growth, but also force countries to take sides and allow China to develop alternatives, "said Rick Meckler, partner of Cherry Lane. Investments in New Vernon, New Jersey.

"There is a lot of speculation and there is no basis, but it seems that trade negotiations are getting worse and do not improve."

Lumentum Holdings Inc. has announced it will end shipments to Huawei and reduce its quarterly revenue forecast.

Alphabet (NASDAQ 🙂 Google has suspended some deals with Huawei, Reuters reported over the weekend, while chip makers, whose Intel Corp (NASDAQ :), Qualcomm, Xilinx Inc (NASDAQ 🙂 and Broadcom have announced to their employees that they will not provide the Chinese company until further notice, Bloomberg announced on Sunday.

Actions of the alphabet, Facebook Inc (NASDAQ 🙂 and Microsoft Corp (NASDAQ 🙂 were all down 2%.

At 8:51, ET, down 170 points, or 0.66%. were down 23 points, or 0.8%, and down 117.5 points, or 1.56%.

The intensification of trade tensions pushed the Nasdaq and Nasdaq to record their second consecutive weekly decline on Friday, as the index capped for the fourth consecutive week of losses, the longest losing series of the past three years.

Investors will also be seeking feedback from a group of retailers reporting this week, including Home Depot (NYSE :), Nordstrom (NYSE :), Kohl's and Target (NYSE 🙂 for comments on the impact of the last tariff war.

With 460 companies in the S & P 500 reporting first quarter results, 75.2% outperformed analysts' profit forecasts. Analysts now expect earnings growth of 1.4% in the first quarter, a significant turnaround from the 2% loss expected on April 1, according to Refinitiv data.

The speech of Federal Reserve Chairman Jerome Powell, entitled "Assessing the Risks to Our Financial System" at the conference organized by the Federal Reserve Bank of Atlanta at 7 pm is also topical. And (2300 GMT).