Tech Selloff Deepens as U.S. Equities Extend Decline
U.S. stock markets extended losses this week, with the technology-heavy Nasdaq Composite dropping over 1%, leading the broad market downturn. Persistent concerns about elevated interest rates continue to weigh on growth valuations, particularly in the tech sector.
- Nasdaq fell 1.2%, marking its sharpest daily drop in nearly a month
- S&P 500 declined across sectors, with tech at the forefront
- Apple, Nvidia, and Microsoft among major tech names dragging the index
Rate Fears Mix with Earnings Pressure
Despite modest cooling in inflation, recent hawkish comments from Fed officials have dimmed hopes for rate cuts this year. At the same time, mixed earnings reports from key tech firms have raised questions about sustainable growth at current valuation levels.
Analysts note a shift in capital toward defensive sectors like utilities and consumer staples. Without a clear pivot in monetary policy, markets may remain volatile in the near term.