Synopsys, Inc. ( SNPS ) and Cadence Design Systems, Inc. ( CDNS ) stocks moved lower on Wednesday after President Donald Trump‘s administration ordered chip designers to stop selling to China.

What To Know: The move restricts access to software that is critical for semiconductor development, according to the Financial Times. The restricted software includes key electronic design automation tools.

The decision comes amid an escalating U.S.-China tech trade war and further limits China's ability to develop advanced chips.

The policy shift also appeared to weigh on the broader market.

Price Action: At market close on Wednesday, Synopsys ( SNPS ) stock traded 9.64% lower at $462.43 and Cadence stock was down by 10.67% at $288.61, according to data from Benzinga Pro.

See Also:

• Rocket Pharma’s Gene Therapy Future Clouded By Regulatory Uncertainty