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Nasdaq hits new high as Trump's tech protection policies fuel big deal

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12.07.2018

Stocks on Wall Street rebounded after Wednesday's trade fear-driven selloff as investors gave priority to earnings fundamentals and corporate activity.

Technology stocks on the S&P 500 rose more than 1% and the Nasdaq Composite hit a new all-time high on a major software deal.

Traders shrugged off the Trump administration’s threatened tariffs on a further $US200 billion worth of Chinese products and focused on the benefits of protecting US technology.

Meanwhile, China appears to have pulled back on its tit-for-tat tariffs, as any new tariffs would exceed the value of goods it buys from the US.

The new tariffs would be placed on mainly consumer items such as bicycles and refrigerators, meaning these would contribute to US inflation if there are no other choices for customers.

“We don't know how it’s going to pan out,” Globalt Investments senior portfolio manager Tom Martin says. “But the market is understanding more and more that President Trump isn’t bluffing.”

Broadcom in $US18.9b deal
The administration’s policies to stop Chinese theft of technology has been linked to the big software deal – a $US18.9 billion cash deal from former Singapore-based chipmaker Broadcom for software company CA.

Broadcom has strong Chinese connections after being renamed from its original acquirer, Avago Technologies. It has now........

© The National Business Review