PARIS (Reuters) – The New York Stock Exchange opened on weak variations on Monday, fears of a default of payment of the United States and the threat of an intensification of the tensions between Beijing and Washington after the banning of certain products of Micron Technology in China urging investors to be cautious.

In early trading, the Dow Jones index gained 18.21 points, or 0.05%, to 33,444.84 points and the broader Standard & Poor’s 500 rose 0.14% to 4,198.19 points.

The Nasdaq Composite took 0.16%, or 20.21 points, to 12,678.10.

China’s decision on Sunday to ban national operators of key infrastructure from working with US semiconductor maker Micron has raised the prospect of a heightened trade dispute with the United States.

“We expected and (now) anticipate further moves from both sides and allies as the United States seeks to contain China’s industrial espionage and China’s retaliation,” the authors write. Citi analysts in a note, seeing the ban on Micron as another salvo in the trade war between the two countries.

Micron shares fell 3.75%, dragging in their wake Qualcomm, Broadcom, Nvidia and Advanced Micro Devices, which fell from 0.28% to 1.38%.

Also in the technology sector, Meta Platforms gains 0.80% despite a fine of 1.3 billion dollars imposed by European authorities for the processing of users’ personal data, while Apple (-0.58%) is penalized by lowering Loop Capital’s recommendation to “hold”.

Regarding the American debt ceiling, which will have to be raised by June 1, at the risk of a default, negotiations between Democrats and Republicans must resume during the day after a phone call on Sunday deemed “productive between Republican leader Kevin McCarthy and President Joe Biden.

Investors are also awaiting the publication at the end of the week of the PCE price index, the preferred measure of inflation by the US Federal Reserve, while several central bank officials are due to speak. time, including James Bullard on Monday.

(Written by Claude Chendjou, edited by Blandine Hénault)

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