Chip stocks hit by report of Biden Huawei ban

Chip stocks faced even more pressure Monday following a report President Joe Biden will ban U.S. chip makers from doing business with China’s Huawei Technologies Co. The PHLX Semiconductor Index
SOX,
-2.67%
fell to around 2,865 from 2,885 following a report from Bloomberg News that the Biden Administration was contemplating cutting off handset and mobile device maker Huawei off from U.S. suppliers like Intel Corp.
INTC,
-0.75%
and Qualcomm Inc.
QCOM,
-1.33%,
which had just settled a longstanding patent-license dispute with Huawei in late 2020.