Nasdaq Plunges 1,100 Points on Rate Hike Fears
US stocks sank sharply on Friday, with the Nasdaq Composite closing over 1,100 points lower (4.18%) as May's labor data showed 172,000 jobs added versus an estimate of 88,000, reigniting rate hike fears.
NVDANVIDIA Corporation
AVGOBroadcom Inc.
ORCLOracle Corporation
INTCIntel Corporation
CSCOCisco Systems, Inc.
JNJJohnson & Johnson
MCDMcDonald's Corporation
PGProcter & Gamble Company (The)
CATCaterpillar, Inc.
VVisa Inc.Key Numbers
US stocks plunged on Friday, led by the Nasdaq Composite which closed over 1,100 points lower (4.18%), as investors grew concerned that the Federal Reserve may be inclined to hike interest rates again.
Possible Causes
The sell-off followed May's labor data, which showed 172,000 jobs added versus an estimate of 88,000. This surprisingly strong performance gives the Fed more room to continue tightening monetary policy.
Context
The sharp decline comes after weeks of gains, making a correction technically expected. The tech sector, heavily weighted in the Nasdaq, was hit hardest.
Similar Moves in the Sector
Major tech stocks including NVIDIA (NVDA), Broadcom (AVGO), Oracle (ORCL), Intel (INTC), and Cisco (CSCO) saw steep declines, reflecting the sector-wide impact of rate hike fears. Other stocks such as Johnson & Johnson (JNJ), McDonald's (MCD), Procter & Gamble (PG), and Caterpillar (CAT) also fell.
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