Investors see tensions from Pelosi’s trip to Taiwan
- US stocks fell on Tuesday as House Speaker Nancy Pelosi is due to land in Taiwan this morning.
- Investors are pricing in heightened tension between the United States and China ahead of Pelosi’s trip.
- Taiwan is a key maker of semiconductor chips that power everything from phones to cars.
U.S. stocks fell on Tuesday as investors gauge rising tensions between the U.S. and China ahead of House Speaker Nancy Pelosi’s trip to Taiwan.
As part of a wider trip to Asia, Pelosi is due to land in Taiwan later this morning, and the expected arrival of the US number three has angered China considerably in recent days.
China claims Taiwan as part of its territory and has declared that it “don’t sit idly by” if such a high-ranking American politician visits the island. China has been seeking “reunification” with Taiwan for decades.
Taiwan is a key maker of semiconductor chips that power everything from phones to cars, and its untenable relationship with China is one of the reasons Congress passed the CHIPS law last month, a package of 280 billion dollars that encourages the relocation of semiconductor manufacturing to America.
Here’s where the U.S. indices were shortly after the 9:30 a.m. ET open on Tuesday:
Pelosi’s planned trip to Taiwan not only rattled U.S. stocks on Tuesday, it also sent Taiwan stock market prices lower. The Taiwan Stock Exchange-weighted index fell 2.1% in Tuesday’s trading session. The country’s largest company, Taiwan Semiconductor, fell more than 3%.
Russia’s Nord Stream 1 pipeline continues to see a flow of natural gas to Europe as the country says it is essentially powerless to carry out necessary repairs to the pipeline’s turbines.
Shares of Pinterest soared nearly 20% on Tuesday after activist investor Elliot Management revealed it had acquired a 9% stake in the social media platform, making it the biggest investor in Pinterest. company. News of Elliot’s involvement helped investors dismiss disappointing second-quarter results.
West Texas Intermediate crude oil rose 0.52% to $94.38 a barrel. Brent, the international oil benchmark, edged up 0.41% to $100.44.
Bitcoin fell 0.19% to $22,810. Ether prices fell 0.07% to $1,577.
Gold jumped 0.74% to $1,801.00 an ounce. The 10-year Treasury yield rose one basis point to 2.59%.