Sharp Drops in Big Tech Companies Pull Indexes Mostly Lower on Wall Street
The Nasdaq fell 1.5% as investors sold pricey technology shares on worries about higher interest rates and persistent inflation, analysts said.
- On Tuesday, stocks slumped on Wall Street as a technology sell-off spread from Asia to the U.S., driven by investor anxiety over probable interest rate hikes later this year.
- The growing likelihood of interest rate hikes has deflated a massive run-up in AI-related stocks, as traders worry that higher rates could hamper economic growth.
- Major technology companies faced significant losses, with Samsung Electronics slumping 12.3% in South Korea and Micron Technology falling 9.4%, while the Nasdaq composite tumbled 1.5%.
- Traders are betting on a nearly 90% chance that the Federal Reserve will raise its benchmark interest rate at least once before year-end.
- High yields in bond markets, fueled by inflation concerns, threaten to slow economies while increasing borrowing costs for mortgages and other types of loans.
53 Articles
53 Articles
Tech stocks tumble in Asia, US
Turbulence in Asian tech stocks spread to Wall Street, with investors worried about rate hikes, massive spending, and overvaluation. Sandisk and Micron, memory-makers which had seen huge gains in recent months, both tumbled around 13% as part of a broader Nasdaq fall of 2.2%. Surges are often followed by rapid reversals, The Wall Street Journal reported, noting that the memory firms’ shares are still up 727% and 269%, respectively, this year. In…
American chip manufacturers lead Wall Street’s downfall in the face of fears of rising interest rates in the near future: Nasdaq falls for the second day in a row with companies like Nvidia under pressure
Channel News Asia
Sharp drops in Big Tech companies pull stocks lower on Wall Street
Global stocks fell as fears of higher interest rates sparked a sell-off in technology stocks.
Sharp drops in Big Tech companies pull the Nasdaq down 2.2% in early trading
NEW YORK (AP) – A sell-off in big technology companies spread from Asia back to the U.S., pulling the Nasdaq composite down 2.2% in early trading. The growing likelihood of interest rate hikes coming up this year has helped deflate a massive run-up in AI-related stocks in recent days as traders worry that the higher rates could hamper economic growth. The S&P 500 fell 1.5% early Tuesday. The index is coming off 11 weekly gains out of the last 12…
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