Risk appetite lost some momentum after a US trade judge recommends an import ban on Chinese made iPhones. The Nasdaq gave up all of its earlier gains, while Apple shares turned negative.
ITC Judge MaryJoan McNamara saw Apple infringing on a few of Qualcomm’s patents, this was the first case being reviewed today. Her recommendation will be reviewed by the full commission in July and if upheld, we then would see a 60-day waiting period for the ban to take place. The second case could see an immediate ban implemented or provide extra leverage for Qualcomm to settle with Apple.
Qualcomm is seeking a broad injunction and if they win the second case, we could see major effects in the chip sector. This could have effects on Apple partner, Intel and potentially remove them from the 5G market.