- On speculation that rate hikes may limit the attraction of the highly valued industry that has fueled the bull run in shares, technology companies pulled stock prices lower.
- The Nasdaq 100 index has dropped the most since September, owing to losses in tech giants such as Apple and Tesla. On dismal revenue expectations, software behemoth Adobe fell 10%, while a barometer of semiconductor stocks fell around 4%. The S&P 500 lost gains triggered by betting that central banks can tighten policy to combat inflation without putting the economy in jeopardy. Financial, commodities, and industrial stocks all increased in value. bitcoin slid.
- Despite the decline on Thursday, technology stocks remain among the year's most remarkable outperformers. Apple has lately approached what would be a historic $3 trillion market value, with valuations reaching levels last seen during the dot-com bubble. While the prospect of rate hikes may dampen the industry's appeal, other experts believe it will still do well because to its high earnings potential.
- Meanwhile, policymakers are debating how to combat pricing pressures while balancing growth threats. To soften the transition away from crisis stimulus, the ECB temporarily increased regular monthly bond purchases for a half-year. The pound rose after the Bank of England boosted interest rates unexpectedly. The statements came after the Federal Reserve announced on Wednesday that it will speed up the pace at which it reduces asset purchases while forecasting rate hikes until 2024.
