Wall St falls amid renewed slump in tech

Wall St falls amid renewed slump in tech

The Nasdaq Composite dropped 2.78 per cent to 13,791.15.

The Philadelphia Semiconductor index sank 4.83 per cent.

US exchanges were busy, with 13.4 billion shares changing hands, compared with a 12.6 billion average over the last 20 trading days.

Wall Street’s latest sell-off follows a slump on Thursday (Friday AEDT), when data showed consumer prices surged 7.5 per cent in January, the biggest annual increase in 40 years. Comments from St Louis Fed Bank President James Bullard about aggressive rate hikes have also rattled investor sentiment.

For the week, the S&P 500 fell 1.8 per cent and the Nasdaq shed 2.2 per cent.

Traders are pricing in a half-point rate hike in March with just a scant chance of a smaller quarter-point raise, and heavy bets for a policy path that would bring rates to a range of 1.75 to 2 per cent by the end of the year.

“If the Ukraine is attacked, it adds more credence to our view that the Fed will be more dovish than the market currently believes as the war would make the outlook even more uncertain,” said Jay Hatfield, chief investment officer at Infrastructure Capital Management in New York.

A University of Michigan survey showed US consumer sentiment fell to its lowest in more than a decade in early February on expectations that inflation would continue to rise in the near term.

The CBOE volatility index, also known as Wall Street’s fear gauge, was up for a second straight session and hit its highest level since the end of January.

Online real-estate platform Zillow Group Inc jumped 12.7 per cent after beating Wall Street estimates for quarterly sales, boosted by an 11-fold revenue increase in its homes segment.

Under Armour Inc slumped 12.5 per cent after warning that its profit margin would be under pressure in the current quarter.

Declining issues outnumbered advancers on the NYSE by a 2.40-to-one ratio; on Nasdaq, a 2.54-to-one ratio favoured decliners.

The S&P 500 posted 15 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 40 new highs and 208 new lows.

Reuters

Reuters

Read More

Free weekly Newsletter

A weekly breakdown of forecasts and trends

Enter your contact info to get The Financial Gambits VIP Newsletter for FREE.

We hate spam as much as you, if you dont like it just unsubscribe and we will never bother you again