US technology companies with business in China automatically lost value as news was condemned by the arrest of Huawei CFO Meng Wanzhou, who was allegedly accused of violating US sanctions, CNBC's Jim Cramer said Thursday.
"It would seem reasonable to say that further negotiations could fail," he said. "Until we know more, we need to find out that further downgrades are coming [and] .These tech stocks could be even more painful, unless the CFO is allowed to return to China or at least release them on their own."
"Even then we are in seriously unknown waters," he said. "At least for technology related to China, caution is needed until we know more."
In addition, White House "hardliners" to China ̵
"These people want to claim America's place as the world's only superpower, believing that some pain has to be accepted, even if it violates corporate profits, to prevent China from questioning US hegemony," he said "Mad Money" host. "This sort of thing gives the hardliners lots of ammunition because it shows that trading with China means more than making money."
Stock prices fell dramatically in the first half of Thursday's trading session At one point Jones Industrial Averages brought the Dow two-day losses to over 1,500 points, with averages rising again, although the Dow and S & P 500 ended the day lower.