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Stocks under pressure as Huawei blacklisting hits tech sector

➤ U.S., Mexico, Canada outline plan to end steel, aluminum tariffs

➤ Australian stocks gain on election upset

➤ Austrian chancellor calls for snap elections

➤ Indian rupee rises as Modi expected to return to power

Global stocks were under pressure May 20, led by technology shares, amid rising concerns about the fallout from the blacklisting of Huawei Technologies Co. Ltd. by the U.S.

Wall Street opened lower, with Alphabet Inc., Intel Corp., Qualcomm Inc., Broadcom Inc. and Xilinx Inc. declining over reports that the companies were suspending some of their businesses with Huawei in light of the U.S. move.

Tech-heavy NASDAQ 100 was down 1.40% around 9:30 a.m. ET and the S&P 500 slipped 0.70%.

European semiconductor companies' shares also fell around 9:30 a.m. ET as German chipmaker Infineon Technologies AG reportedly halted shipments to Huawei. STMicroelectronics NV shed 9.3%, Infineon fell 5.3%, NXP Semiconductors NV in Frankfurt declined 5.7% and ASML Holding NV dropped more than 5%.

The U.S. blacklisted Huawei on national security grounds on May 16, but is now reportedly considering temporarily scaling back restrictions on the Chinese telecommunication equipment provider so it could service its existing customers.

Germany's DAX lost 1.8% and France's CAC 40 declined 1.7%. Austrian Vice Chancellor Heinz-Christian Strache resigned over the weekend, paving the way for Chancellor Sebastian Kurz to call for new elections this fall.

In Asia, the Shanghai SE Composite lost 0.4% and Hong Kong's Hang Seng index fell 0.6%. The Nikkei 225 index rose 0.2% as the Japanese economy expanded 2.1% in the first quarter as opposed to the Econoday's consensus estimate of a contraction.

The S&P/ASX 200 closed 1.7% higher as Scott Morrison was elected to his first full term as prime minister in Australia's general federal election May 18, defying election predictions. The Australian dollar appreciated 0.8% against its U.S. counterpart.

U.S. President Donald Trump reiterated that China backtracked on their trade commitments, which resulted in additional tariffs on Chinese goods. He said the higher duties were forcing companies to produce outside of China, Reuters reported. Chinese Foreign Ministry Spokesman Lu Kang said trade talks failed as the Trump administration tried to pursue "unreasonable interests," Reuters reported.

Meanwhile, the trade dispute between the U.S., Mexico and Canada over aluminum and steel tariffs was set to end as the three countries agreed May 17 to drop duties within two days.

Among other currencies, sterling was flat versus the dollar as U.K. Prime Minister Theresa May plans to bring forth "a new, bold" Brexit deal to Parliament in June in an attempt to garner cross-party support after talks with the Labour Party fell through.

The parliament is unlikely to approve a revised deal in June, as the pressure on lawmakers to reach a deal has eased after Brexit's extension until October, Danske Bank Research said in a daily note.

The Indian rupee strengthened 0.7% against the dollar as exit polls suggest that Indian Prime Minister Narendra Modi will return to power at the head of a coalition government, with final election results due May 23.

The Japanese yen strengthened 0.15% and the euro was little changed against the dollar.

In commodities, Brent crude oil added 0.4% to $72.48 per barrel on the ICE Futures Exchange, having jumped 1.5% earlier in the day, after Saudi Arabia's Energy Minister Khalid al-Falih reportedly said oil inventories need to shrink despite tensions in the Middle East and U.S. sanctions on Iran. The OPEC and its allies are due to convene in Vienna in June to discuss oil supply levels.

The current deal on production cuts does not need to be extended, according to Warren Patterson, head of commodities strategy at ING Research, as the supply is expected to tighten significantly going into the third quarter.

Gold was steady at $1,276 per ounce.

In the bond market, 10-year yields on Treasurys were broadly steady.

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Soros initiates stakes in Lyft, Netflix but exits Alphabet, Amazon

Existing US Huawei gear has risks, but forcing removal may not be a priority

The day ahead:

8:30 a.m. ET — Chicago Fed national activity index (Econoday consensus: -0.10)

8:50 a.m. ET — U.S Fed's Raphael Bostic speaks

9:30 a.m. ET — U.S. Fed's Patrick Harker speaks

1 p.m. ET — U.S. Fed's John Williams and Richard Clarida speak

7 p.m. ET — U.S. Fed Chair Jerome Powell speaks