US stocks have fallen after reports the Trump administration is considering delisting Chinese companies from US stock exchanges, raising worries about a further escalation in the US-China trade war. The move would be part of a broader effort to limit US investment in Chinese companies, sources told Reuters. High-level trade talks between Washington and Beijing are scheduled for October 10-11, before the start of the US third-quarter earnings season.

The tariff-sensitive Philadelphia semiconductor index extended its decline after the reports and ended down 2.4 per cent on Friday. The index was already under pressure from Micron Technology’s, which tumbled after it forecast a disappointing first-quarter profit. The S&P technology index dropped 1.3 per cent. US-listed shares of Alibaba, Baidu and JD all slid.

Adding to the negative momentum in afternoon trade, the S&P 500 index briefly fell below its 50-day moving average. The Dow Jones Industrial Average fell 70.87 points, or 0.26 per cent, to 26,820.25, the S&P 500 lost 15.83 points, or 0.53 per cent, to 2961.79 and the Nasdaq Composite dropped 91.03 points, or 1.13 per cent, to 7939.63.

Morning-Market-Note-Monday-30th-September