By Callum Keown

Palo Alto Networks, Fortinet and other cybersecurity stocks were under pressure ahead of the open Wednesday following a report that China has ordered domestic companies not to use software made by a number of U.S. companies.

Beijing has effectively banned Chinese companies from using software made by a dozen U.S. and Israeli companies, including Palo Alto, Fortinet, and Broadcom-owned VMware, Reuters reported Wednesday. The move is due to national security concerns, the report added, citing two people briefed on the matter. Israel's Check Point Software Technologies is also included.

Palo Alto Networks pointed 3.3% lower, while Fortinet was down 2.9% -- the two worst performers in the S&P 500 ahead of the open. Broadcom was down 1%. U.S.-listed Check Point Software fell 1.4%.

The four companies did not immediately respond to requests for comment early Wednesday.

Write to Callum Keown at callum.keown@dowjones.com

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January 14, 2026 06:35 ET (11:35 GMT)

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