The Nasdaq led losses among Wall Street’s major indexes Thursday as a jump in Treasury yields sent growth stocks tumbling after the Federal Reserve signaled another interest rate hike this year.
Rate-sensitive stocks, including Tesla, Meta, Amazon.com, Alphabet and Nvidia, fell between 1.5% and 3.0% as two- and 10-year Treasury yields reached the multi-year highs.
Semiconductor company Broadcom fell 3.9% on news that executives at Alphabet-owned Google discussed withdrawing the company from supplying artificial intelligence chips as early as 2027.
The US central bank took a widely expected pause on Wednesday and raised its economic forecasts, warning that the battle against inflation is far from over, triggering a weak session on Wall Street.
The benchmark interest rate could be increased once again in 2023, to a maximum of between 5.50% and 5.75%, while monetary policy could remain tighter than expected until 2024, according to projections updated quarterly reports of the Bank.
At 11:32 am (Brasilia time), the Dow Jones index fell 0.40%, to 34,302.07 points, while the S&P 500 lost 0.78%, to 4,367.93 points. The Nasdaq Composite technology index fell 1.16% to 13,313.02 points.
Source: Terra
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