REUTERS
A man covers his face as he reads information displayed on an electronic screen at a brokerage house in Shanghai May 17, 2010.
- Chinese tech stocks traded in the US are set drop Thursday.
- China's Shanghai Composite plunged more than 5% overnight.
- On Thursday morning, all the US major tech giants are lower ahead of the opening bell.
- Watch Alibaba, iQiyi, JD.com, Baidu.com, Pinduoduo, Nio trade in real time here.
Chinese tech stocks traded in the US are set to take hit Thursday as both tech stocks and Chinese stocks have been punished overnight.
Thursday's sell-off comes after the Dow Jones industrial average tanked 831 points, or 3.15%, on Wednesday as traders grappled with global growth concerns, trade fears, and the possibility of more Federal Reserve interest-rate hikes. The tech sector took a beating on Wednesday when the FAANG companies lost a collective $172 billion in value.
And that was just the start of the selling. Overnight, Chinese markets were hit extremely hard, with the Shanghai Composite plunging 5.22% to its lowest level in more than four years. At issues was an escalation in the recent trade tensions between the US and China.
On Wednesday, Treasury Secretary Steve Mnuchin warned China not to weaken its currency as an alternative to tariffs. His comments came one day after China's minister for commerce, Zhong Shan, said "China doesn't want a trade war, but would rise up to it should it break out."
Here's the scoreboard as of 8:45 a.m. ET on Thursday:
- Nio (NIO): -4.6%
- Pinduoduo (PDD): -3.1%
- JD.com (JD): -3.1%
- iQiyi (IQ): -2.6%
- Alibaba (BABA): -1.4%
- Baidu.com (BIDU): -1.6%
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