Tech stocks tumble as China retaliates in latest salvo of the trade war

Shares of technology companies were hit hard as China retaliated against the U.S. in the latest salvo of the ongoing trade war between the two countries.
The S&P 500 Index shed roughly $1.1 trillion of value while the Dow Jones Industrial Average and the Nasdaq Composite Index fell 2.38% and 3.41%, respectively.
On Monday, China responded in equal measure to the U.S. raising tariffs on imports to 25% by imposing 25% duties on some $60 billion of U.S. exports to the country.
On June 1, Beijing will impose 25% tariffs on more than 5,000 products. Several more exports to the country will see their duties rise to 20%. That’s up from 10% and 5%, previously. The highest tariffs seem to be on products designed to cause pain among President Donald Trump’s political base of support — animal products, fruits and vegetables that come from the Midwest.
But tech companies are particularly exposed in the trade war. Indeed, the news sent technology shares spiraling in what venture capitalist (and former TechCrunch co-editor-in-chief) Alexia Bonatsos called the “Tech Red Wedding.”

Tech Red Wedding
— Alexia Bonatsos (@alexia) May 13, 2019
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