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Tech Stocks Slide as Investors Worry About Hawkish Fed Outlook Despite Strong Job Market

  • Tech stocks led a retreat at the open on Thursday, as Wall Street fretted about the hawkish message sent out by the Federal Reserve.

  • The prospect of prolonged elevated rates has spooked some investors, putting pressure on stocks and bonds.

  • Official figures showed jobless claims last week fell to lowest level since January, a sign of strength in US labor market.

  • Stocks of FedEx popped in premarket trading after a big quarterly profit beat.

  • Investors debated how long it could be before Fed policymakers cut interest rates from their elevated levels.

yahoo.com
Relevant topic timeline:
U.S. stock index futures rise as Treasury yields decline, with tech stocks leading the rally ahead of earnings reports and Federal Reserve Chair Jerome Powell's upcoming speech.
Tech stocks, led by Nvidia's blowout earnings report, saw mixed results in the stock market as the Nasdaq and S&P 500 rose while the Dow Jones slipped; investors eagerly await Fed Chair Jay Powell's speech at Jackson Hole.
Investors expecting a continued surge in technology stocks due to enthusiasm over artificial intelligence may face trouble as central banks tighten monetary policy, according to Bank of America strategists. The correlation between central bank liquidity and tech stocks is a cause for concern, as central bank balance sheets have shrunk while the Nasdaq continues to climb, indicating potential risks ahead.
Tech stocks led a rally in the stock market, with the Nasdaq Composite gaining 1.6% and the S&P 500 ending a four-day losing streak, despite the rise in Treasury yields; investors will be looking for clues about the US consumer spending and the economy as retailers' earnings reports are expected, and Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium is anticipated for indications on interest rates.
Tech stocks are expected to continue their rally as a surge in spending on AI is anticipated to ease concerns about interest-rate hikes by the Federal Reserve.
Stocks closed higher on Wall Street as economic reports indicated a cooling economy, potentially leading to a pause in interest rate hikes by the Federal Reserve.
Wall Street ended a challenging August on a mixed note, with the Dow Jones down 0.5%, the S&P 500 losing 0.16%, and the Nasdaq gaining 0.11%, resulting in the worst monthly performance since earlier this year; however, signs of a soft landing for the US economy and lower jobless claims have sparked hopes that the Fed may ease off on interest rate hikes at its upcoming meeting.
Stocks on Wall Street are expected to decline as concerns about inflation raise doubts about the Federal Reserve's decision to cut interest rates, while worries about crumbling demand and falling German industrial orders add to the uncertainty.
The stock market sinks as a tech selloff occurs due to investors' fear of more Fed rate hikes, with Apple, Tesla, and Nvidia all experiencing significant declines.
Big tech, including Apple, faced pressure as concerns grew over China potentially expanding its iPhone ban, while equity futures fell due to strong jobless claims figures, reinforcing the case for the Federal Reserve to maintain elevated interest rates.
Stock futures slipped on Friday as officials hinted the Federal Reserve may keep interest rates unchanged, causing tech stocks, particularly Apple, to fall, although the company's shares stabilized after dragging down the Nasdaq.
Tech stocks retreated as Oracle posted slowing cloud sales, while the euro and pound weakened due to concerns over stagflation in Europe. Smurfit Kappa Group plunged after announcing a deal with WestRock Co., and investor confidence in Germany's economy improved. US inflation data and the European Central Bank's interest-rate decision are upcoming events.
Dow Jones futures, along with S&P 500 futures and Nasdaq futures, were unchanged after hours as the stock market rally experienced losses, with the S&P 500 and Nasdaq dropping below the 50-day line, while energy stocks led and software retreated. Apple stock fell after unveiling the iPhone 15 and other products, while stocks such as Salesforce, Alphabet, General Electric, Shopify, and Nvidia remained in or near buy areas. The CPI inflation report and Adobe earnings are potential market catalysts.
The major indexes, including the Dow Jones, S&P 500, and Nasdaq, finished lower on Friday ahead of the Federal Reserve meeting next week, with tech stocks dragging the Nasdaq lower and the S&P 500 and Nasdaq both falling below their 50-day moving average.
Wall Street finished the week with a decline in stocks, as the S&P 500 posted its second consecutive losing week, with technology and retail sectors contributing to the slide, while investors await the upcoming Federal Reserve interest rate policy meeting.
Wall Street fears that the Federal Reserve will push out the timing for rate cuts next year, sparking concerns of a hawkish pause and increasing selling pressure, despite a trend of rapid disinflation and the potential for a higher neutral interest rate.
Stock futures were calm as Wall Street prepared for the Federal Reserve's interest rate decision and economic update, with traders awaiting clues about future monetary policy.
Stock futures rise slightly as Wall Street awaits Federal Reserve decision on interest rates, with Instacart, Ford, Goldman Sachs, Intel, and more among the top movers.
Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, dropped after the Federal Reserve meeting, with the stock market retreating and breaking below critical levels due to the Fed's decision to stick with forecasts for one more rate hike this year and hinted that rates would stay higher for longer.
Stocks closed lower on Wednesday as Wall Street analyzed the Federal Reserve's decision to keep interest rates steady, with the tech-heavy Nasdaq sinking the most, while the Fed's updated forecast showed that interest rates will remain higher for longer than previously anticipated.
U.S. stocks slumped after the Federal Reserve indicated that it may not cut interest rates next year as much as initially expected, causing concerns among investors on Wall Street.
Wall Street is closely monitoring the Fed and Jay Powell's speech, with rising oil prices being a concern, but the general sentiment remains positive for the tech sector, as evidenced by the success of top-ranked Zacks stocks in the tech sector, including AppLovin, Vertiv Holdings, and ePlus Inc.
Markets on Wall Street are expected to open with losses after the Federal Reserve suggests it may not cut interest rates next year by as much as previously thought, leading to a decline in futures for the S&P 500 and Dow Jones Industrial Average; uncertainty surrounding inflationary indicators and high rates is a major concern for traders moving forward.
Big Tech stocks, driven by the promise of artificial intelligence, are experiencing a slowdown in their massive rally due to the Federal Reserve's indication of a restrictive monetary stance, causing declines in some tech giants' stock prices.
The stock market had a cool summer with the Dow Jones up 0.5%, the S&P 500 down 0.4%, and the Nasdaq down 1.3% from June 21 to Friday, as big tech stocks experienced a slump while energy stocks performed well.
Wall Street stocks struggled to make gains as the Federal Reserve's interest rate strategy and the looming threat of a US government shutdown continued to create pressure, while oil prices rallied, raising concerns about inflation and the Fed's ability to cut rates.
Stock futures declined and Treasury yields moved higher as belief grows on Wall Street that the Federal Reserve likely will keep interest rates higher for longer.
A majority of Wall Street investors are concerned about the stock market's gains in 2023 and believe that it could retreat further as the risk for a recession increases.
Wall Street stocks slipped as investors reviewed data on the US economy, with the S&P 500 and the Dow Jones Industrial Average trading slightly lower, and the Nasdaq Composite dropping further; the 10-year Treasury yield continued to rise, and oil prices turned lower after hitting new highs.
Stocks retreated in September as Wall Street reacted to new data on inflation and fears of higher interest rates by the Federal Reserve, with major indexes seeing drops of 3-5% for the month and quarter; meanwhile, bonds saw some relief from rate jitters and the looming US government shutdown added further uncertainty to the market.
Stocks on Wall Street are drifting as higher interest rates continue to impact the market, with the S&P 500 remaining largely unchanged and the Dow Jones down slightly, as investors grapple with the prospect of high inflation and the Federal Reserve's efforts to lower it.
Tech stocks could see a boost in the fourth quarter if Treasury yields decline, as their valuations have fallen relative to the broader market, according to Goldman Sachs analysts.
Stocks slumped as the bond rout continues and one Fed policymaker predicted another interest rate hike this year, with the Nasdaq falling 0.5% and the S&P 500 and Dow Jones Industrial Average losing 0.4%.
Wall Street stocks fell at the open as rising Treasury yields and hawkish comments from Fed policymakers dampened investor optimism about a potential interest-rate cut.
Tech stocks, including the Nasdaq and companies like Airbnb, are facing a rough start to October as a spike in interest rates leads investors to pull out of risky assets.
Wall Street closed higher as the bond market loosened its grip on stocks, with the S&P 500 rising 0.8% and the Dow Jones Industrial Average rising 0.4%; tech stocks helped support the market after a previous decline, while Treasury yields eased and oil prices dropped.
The Nasdaq declined for the fourth consecutive day as tech stocks continued to slide amid concerns over an economic slowdown in China and potential rate hikes by the Federal Reserve, while healthcare stocks boosted the Dow; Treasury yields fell, and oil prices dipped after a nine-day winning streak.
Stocks slipped as rising yields in the bond market and new inflation news put pressure on Wall Street, with the S&P 500, Dow, and Nasdaq all experiencing losses.
Dow Jones futures rose slightly while S&P 500 futures and Nasdaq futures fell; Treasury yields retreated and crude oil spiked as U.S. sanctions on Russian crude sales tightened; UnitedHealth, JPMorgan Chase, Wells Fargo, Citigroup, PNC Financial Services, and BlackRock reported their earnings; the stock market rally retreated after an inflation report and a poorly received Treasury auction; Apple and Microsoft stocks edged higher while Google and Meta Platforms fell; Dow Jones futures rose slightly; the 10-year Treasury bond yield fell; the stock market rally struggled at key levels; growth ETFs slumped; megacap stocks like Apple, Microsoft, Google, Meta, Nvidia, Amazon, and Tesla were down a fraction; investors should be cautious and ready to reduce or exit positions if necessary.
Stocks fell as Treasury yields rose and investors reacted to a speech by Federal Reserve Chair Jerome Powell, with the Dow Jones Industrial Average down 0.75%, the S&P 500 falling 0.9%, and the Nasdaq Composite leading the losses with a nearly 1% drop; in other news, Netflix shares surged more than 16% after the company reported a surge in subscriber numbers and announced plans to raise prices in the US, while Tesla shares fell almost 10% after the company's earnings missed estimates.
US stocks slipped ahead of the bell on Friday as benchmark Treasury yields retreated from a spike to 5% after comments by Federal Reserve Chair Jerome Powell, signaling the Fed's commitment to "higher for longer" rates; Dow Jones Industrial Average was down 0.2% and S&P 500 futures shed 0.3%, while Nasdaq 100 contracts dropped almost 0.4%.