Amazon.com Inc. led big technology and internet stocks lower after Federal Reserve Chair Jerome Powell dashed hopes that relief from the central bank’s monetary tightening campaign was on the horizon.
(Bloomberg) — Amazon.com Inc. led big technology and internet stocks lower after Federal Reserve Chair Jerome Powell dashed hopes that relief from the central bank’s monetary tightening campaign was on the horizon.
The e-commerce giant sank 4.8% on Wednesday, while Apple Inc., Microsoft Corp., Alphabet Inc., and Meta Platforms Inc. all fell more than 3%, as did the Nasdaq 100 index.
Stocks turned decisively lower after Powell said it was “very premature” to think about pausing interest rate hikes minutes after the central bank raised its benchmark rate by 75 basis points for the fourth-consecutive time. He also noted data since the last meeting suggests that the “ultimate level of interest rates will be higher than previously expected.”
“What we heard from Powell today was higher for longer and higher for longer is not good for tech stocks,” said Matt Maley, chief market strategist at Miller Tabak.
The sector is among the worst performing this year amid soaring inflation that’s prompted the Fed to embark on a series of rate hikes intended to slow the economy and curb the rise in prices. The Nasdaq 100, which is heavily weighted toward technology companies, has fallen by a third this year.
–With assistance from Ryan Vlastelica.
(Updates with market close.)
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