China Tries to Ban Chipmaker
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Good morning Wake-up Watchlisters! While you’re sipping coffee you’ll see stock futures were flat on Monday. Traders closely monitored the ongoing negotiations surrounding the U.S. debt ceiling. President Joe Biden and House Speaker Kevin McCarthy are scheduled to meet on Monday to continue negotiations, as Treasury Secretary Janet Yellen warned that the U.S. could potentially default on its debt as early as June 1.
Despite the debt ceiling panic, the markets continue to trend higher. Bank of America strategist Savita Subramanian hiked the year-end target for the S&P 500 to 4,300 from 4,000. In The War Room, we’ve been taking advantage of the recent rally with an 80% win rate last week, going 8-for-10 on our trades.
Here’s a look at the top-moving stocks this morning.
Micron Technology (Nasdaq: MU)
Micron Technology is down 4.75% premarket as news emerged regarding a potential ban on the company’s chip sales to certain Chinese firms. This development could be considered as one of China’s most significant retaliatory actions against the United States’ attempts to limit the export of advanced semiconductor technology to China.
As China continues its attempt to gain a foothold on key technologies in Taiwan, it’s crucial to consider US semiconductors right now.
Nio Inc. (NYSE: NIO)
Chinese electric vehicle (EV) manufacturer NIO Inc is up 2.11% premarket after it made an investment in Neo Fusion, a startup focused on fusion technologies. NIO endorses battery swapping as a faster solution for charging EVs and aims to enhance grid stability through an energy storage facility. Neo Fusion, backed by the Chinese government-owned energy companies and investment arms of Anhui province, will conduct research and development for global commercialization of controlled fusion over the next 20 years. NIO has invested 995 million renminbi ($145.42 million) to acquire a 19.9% stake, while NIO Capital, founded by NIO’s CEO William Li, has invested 505 million renminbi ($73.81 million) for a 10.1% share in Neo Fusion.
The electric vehicle market is expected to worth $7 trillion in the near future, and our friend Andy Snyder has been pounding the table on this EV startup. Its car is faster than Ferrari’s F8, and The Wall Street Journal says it could be the “next Tesla.”
Those are the biggest stock movers for today.
The Wake-Up Watchlist Research Team