tech
Chips sector bloodbath drags Nasdaq down 4.2%
Tech stocks plunged Friday amid rising bond yields, dragging down the Nasdaq in its worst session in 14 months.
TL;DR
- Tech stocks, especially chipmakers, plunged on Friday due to rising bond yields and concerns about AI growth expectations.
- The Nasdaq fell 4.2%, its worst session in 14 months, impacting companies like Broadcom, Nvidia, Marvell Technology, Micron Technology, Intel, and AMD.
- Meta's stock declined amid reports of the company considering shares for its AI build-out.
- Discussions in Washington about the government taking ownership stakes in AI companies are ongoing.
- AI spending is raising inflation fears, as some Fed officials believe it's boosting demand without clear productivity gains.
- Despite the recent pullback, chip sector stocks remain positive year-to-date.