Tech stocks drag stock market lower on growth concerns

The U.S. stock market’s main indexes fell on Thursday, extending declines for a third straight session, as investors worried that the U.S. Federal Reserve’s aggressive approach to rein in rampant inflation running at forty year highs could officially be labeled the recession in which the U.S. is already technically embroiled.

Apple stock drops

Reuters:

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

Weighing on the S&P 500 and the Nasdaq, shares of megacap technology and growth companies such as Apple Inc, Amazon.com Inc, Tesla Inc, and Nvidia Corp fell between 1.0% and 3.6% as benchmark U.S. Treasury yields hit an 11-year high.

The S&P 500 tech sector has slumped over 27% so far this year as compared to a 21% decline in the S&P 500 index.

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

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

The U.S. central bank lifted rates by an expected 75 basis points on Wednesday and signaled that its policy rate would rise by 4.4% by year end and top out at 4.6% by the end of 2023, a steeper and longer trajectory than markets had priced in

MacDailyNews Take: Yummy. The good news is that there will be deals to be had.

Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult.MacDailyNews, May 11, 2022

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14 Comments

  1. Growth concerns? Nah! I love it when the market is down and prices are up – it is such a refreshing combination. Not like those four years under Don T. Joe has everything under control! Keep it up! (or is that… keep it down?)

  2. Article first paragraph:
    “…as investors worried that the U.S. Federal Reserve’s aggressive approach to rein in rampant inflation running at forty year highs could officially be labeled the recession in which the U.S. is already technically embroiled.”

    This sentence makes no sense. Yes, we’re already in a recession. But it says that the FEDs approach could be labeled………etc., etc.

    1. It makes perfect sense.

      Two consecutive quarters of decline in a country’s real gross domestic product (real GDP) is a recession. We’ve now had that.

      Yet, a recession is not official until the National Bureau of Economic Research deems it so.

      1. There are no rolling blackouts happening in California moron. Maybe Texas does under Republican control since they can’t be bothered creating a solid energy infrastructure that isn’t shoddy with recreational trips to Cancun in the offing as those at home suffer. Only rolling blackouts are happening in delusional conservative’s brains.

        1. @Sad But True using yet another disguise screen name, again fraudulently MANIPULATING voting. You have 31 perfect 5-star votes. Congrats, you earned it after all the EXHAUSTING work below.

          You responded to @Lights Are OFF with 45 votes, 1. 5-star rating. Detailed look at your other work here at 9:03 PM:
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          @Sad But True, obvious the numbers above show your voting fraud goal accomplish 1.5-star NEGATIVE rating in high numbers between 41-50.

          Once again, meaningless sicko pursuit, now tell us again who is the “moron”…

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