Tech stocks drag stock market lower on growth concerns

Major US stock market indices tumbled on Thursday, extending the bears for a third consecutive session as investors feared that the US Federal Reserve’s aggressive approach to curb rampant inflation to 40-year highs could be officially labeled as the recession in which the United States is already technically involved.

Stocks of apples are falling


Ten of the 11 major S&P sectors declined early in trading, led by industrials and consumer discretionary stocks.

Weighing the S&P 500 and the Nasdaq, shares of megacap technology and growth companies like Apple Inc, Inc, Tesla Inc and Nvidia Corp fell between 1.0% and 3.6% while the returns of the Benchmark US Treasuries hit an 11-year high.

The tech sector of the S&P 500 has tumbled more than 27% this year compared to a 21% decline in the S&P 500 Index.

“The higher interest rates imposed yesterday and the more aggressive tone expressed by the Fed will weigh on stocks in general and probably more on the rate sensitive sectors,” said Sam Stovall, CFRA Research chief investment strategist.

The S&P 500 is now 3.3% off its mid-June low, its weakest point of the year.

The US central bank hiked rates by 75 basis points expected on Wednesday and reported that its policy rate will rise by 4.4% by the end of the year and reach 4.6% by the end of 2023, a shorter trajectory. steep and longer than expected by the markets.

MacDailyNews takes: Delightful. The good news is that there will be deals to be made.

Stopping the misleading crusade against domestic energy production and profligate federal spending and inflation will stop suddenly. It is not difficult. – MacDailyNews, May 11, 2022

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