Semiconductor stocks and shares of Apple slid more than their peers in the tech sector on Friday, after President Donald Trump said U.S. companies should "immediately start looking for an alternative" to their operations in China.
Shares of Apple ended the day down 4.6%, while the VanEck Vectors Semiconductor ETF declined 4.1%. Among the chip companies, Qualcomm slid 4.7%, Nvidia lost 5.2%, Advanced Micro Devices dropped 7.4%, Micron fell roughly 4% and Broadcom slid 5.3%.
The tech-heavy Nasdaq was off 2.6%, while the Dow Jones Industrial Average slid 2.3% and the S&P 500 fell 2.5%.
Apple has felt the effects of Trump's trade war with China more than most technology companies. The company conducts the majority of its manufacturing process in China and the Chinese market represents a significant portion of its sales.
Trump's comments on Friday mark the latest fallout in the trade war between the U.S. and China.
Markets immediately began to turn lower after Trump tweeted: "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing ... your companies HOME and making your products in the USA."
Trump's tweet came after China on Friday pledged to levy tariffs on $75 billion more of U.S. goods, including autos. The new tariffs followed Trump's plan to impose duties on $300 billion worth of China's goods by December.
