Can US Tech Survive Trade Wars?

Tech giants Apple and Amazon have shrugged off trade war concerns so far on the way to ever-higher valuations, but risks remain

Brian Colello, CPA 4 October, 2018 | 7:22AM
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Apple iPhone Xs Launch

The Nasdaq index is up more than 15% so far this year, but the US-China trade war adds risk to technology investments. Although companies have not been hit hard by tariffs just yet, we see many tech leaders assessing the current political situation and hoping for a satisfactory outcome.

Apple's (AAPL) popular gadgets, such as the iPhone and Apple Watch, are believed to be exempt from the trade war for now, which we suspect is a relief to the technology supply chain as the vast majority of Apple's devices are assembled in China.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Adobe Inc610.09 USD0.42Rating
Alphabet Inc Class C2,833.50 USD0.19Rating Inc3,409.02 USD3.31Rating
Apple Inc144.84 USD0.75Rating
Cisco Systems Inc55.25 USD-0.72Rating
Microsoft Corp304.21 USD0.48Rating
Oracle Corp95.33 USD0.05Rating Inc291.66 USD0.57Rating

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.