Why KLA Stock Was Plummeting This Week
News of a top-level effort to curb the activities of certain makers of high-tech components was putting the hurt on KLA (NASDAQ: KLAC) stock recently. Spooked by the apparent determination to limit such businesses' interaction with a top Asian peer, investors eagerly traded out of KLA. As a result, according to data compiled by S&P Global Market Intelligence, the company's shares were down by nearly 17% week to date as of early Friday morning.
On Wednesday, Bloomberg reported that the House of Representatives' China Select Committee sent an official letter to Commerce Secretary Gina Raimondo urging her to block U.S. manufacturers of semiconductors and related materials from supplying China's Huawei.
In the letter, the committee's Republican chairman, John Moolenaar, and its Democratic ranking member, Raja Krishnamoorthi, wrote, "We must continue in our efforts to deny Huawei, and similar firms, the ability to access U.S. technology."
Source Fool.com
