USD Strengthens as Trump Halts China Chip Sales, Tech Stocks Tumble

The US dollar index gained 0.4% as President Trump ordered American chip designers to cease sales to China, escalating tech trade tensions and triggering risk-off sentiment across markets. AMD shares dropped to $113.56 while Intel fell 0.53% to $20.44, though Broadcom bucked the trend with a 1.87% gain to $240.03. The semiconductor export restrictions are expected to impact Chinese tech manufacturing significantly, potentially disrupting global supply chains. This geopolitical development has strengthened the dollar's safe-haven appeal, with USD/JPY rising 0.3% to 157.20 and EUR/USD falling 0.2% to 1.0540. Traders are monitoring potential Chinese retaliation and broader implications for US-China trade relations. Technical indicators suggest USD strength could continue if risk aversion persists, with the DXY targeting resistance at 106.50.