US Market crash: Nasdaq plunged as US inflation rose to 8.3% in August 2022
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Why did US stock market crash?
- US markets posted their worst day since June 2020 as high inflation hurt sentiments. Nasdaq lost 5.16%, Dow fell 3.94% and SP 500 closed plunged 4.32%.
- Investor sentiment took a hit after the August consumer price index report showed inflation rising to 8.3% in August, higher than expected. Just five stocks in the S&P 500 finished in positive territory.
- Megacap tech stocks were the worst hit. Together, the top 6 US Tech companies lost more than $500 billion.
- Analysts now say that the US Fed is likely to raise interest rates for the third time in a row, by 0.75% in its upcoming meeting.
US stock market today: Top gainers and losers
| Stock price action | Reason behind the move |
|---|---|
| Amazon crashed 7% | Amazon share price fell sharply amid negative sentiments in tech & growth stocks over higher than expected inflation, anticipation of a sharp interest rate hike. |
| AMD sank 9% | AMD share price ended near 1-year low amid negative market sentiment after spike in inflation, anticipation of aggressive rate hike by US central bank. |
| Apple lost 6% | Apple share price crashed along with other Big Tech stocks over anticipation of a sharp interest rate hike by US central bank. |
| ARK Genomic Revolution ETF fell 6% | ARK Genomic Revolution ETF price fell driven by sharp losses in the underlying stocks of Fate Therapeutics, Pacific Bio and Twist Bio. |
| ARK Innovation ETF lost 7% | ARK Innovation ETF price fell sharply driven by losses in growth stocks such as Unity Software, Coinbase and Teladoc. |
| Atlassian lost 6% | Atlassian share price fell amid negative sentiment in tech stocks over rising inflation and anticipation of a sharp rate hike by US central bank. |
| Cloudflare crashed 11% | Cloudflare share price fell along with other tech stocks over anticipation of sharp interest rate hike amid rising inflation. |
| Coinbase lost 9% | Coinbase share price fell sharply amid crash in cryptocurrencies prices amid spiking inflation, anticipation of sharp hike in interest rates. |
| Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF crashed 6% | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF price fell tracking losses in energy stocks of Antero Resources and Devon Energy. |
| Direxion Daily Semiconductor Bull 3X ETF crashed 18% | Direxion Daily Semiconductor Bull 3X ETF price crashed tracking sharp losses in chip stocks of NVIDIA, AMD and Intel. |
| Direxion Daily Technology Bull 3X ETF crashed 16% | Direxion Daily Technology Bull 3X ETF price fell driven by share losses in the share price of NVIDIA and Apple. |
| DocuSign lost 7% | DocuSign share price witnessed profitbooking after rising 20% in last 1-week, rising inflation drove weakness in growth stocks. |
| Facebook (Meta) sank 9% | Facebook (Meta) share price hit 1-year low amid negative market sentiment after spike in inflation, anticipation of aggressive rate hike by US central bank. |
| Freshworks lost 5% | Freshworks share price tumbled along with other tech stocks amid anticipation of sharp interest rate by US central bank over rising inflation. |
| Netflix crashed 8% | Netflix share price fell along with other tech stocks over higher than expected inflation, a sharp interest rate hike anticipated. |
| NIO rose 1% | NIO share price extended gains after reporting solid revenue in June quarter and strong growth outlook. |
| Nu fell 4% | Nu share price witnessed profitbooking after rising 16% in last 1-week, losses were driven in anticipation of sharp interest rate hike by US central bank amid rising inflation. |
| NVIDIA lost 9% | NVIDIA share price hit 1-year low amid negative market sentiment after spike in inflation, anticipation of aggressive rate hike by US central bank. |
| ProShares Bitcoin Strategy ETF crashed 10% | ProShares Bitcoin Strategy ETF price fell sharply tracking the losses in Bitcoin prices and trading volumes. |
| ProShares Ultra Semiconductors crashed 13% | ProShares Ultra Semiconductors ETF price fell sharply tracking the negative trend in chip stocks of NVIDIA, intel and QUALCOMM. |
| ProShares UltraPro S&P 500 ETF crashed 13% | ProShares UltraPro S&P 500 ETF price crashed over higher than expected inflation data release, anticipation of aggressive hike in interest rate by US central bank. |
| Rivian ended flat | Rivian share price ended flat despite negative market sentiments, tie-up with Mercedes-Benz for Europe expansion kept investors' positive interest in the share. |
| Robinhood lost 5% | Robinhood share price fell sharply along with other tech and growth stocks amid weakness in markets amid anticipation of aggressive hike in interest rate post rising inflation. |
| Shopify crashed 7% | Shopify share price fell sharply amid negativity in tech & growth stocks over anticipation of sharp hike in interest rate by US central bank over rising inflation. |
| Tesla lost 4% | Tesla share price fell amid weakness in broader market over anticipation of aggressive interest rate hike by US central bank to control spiking inflation. |
| Twilio fell 6% | Twilio share price slumped amid crash in tech stocks price on Wall Street over rising inflation, anticipation of sharp hike in interest rate by US central bank. |
| Twitter rose 1% | Twitter share price rose post shareholders approved Musk’s $44 Billion buyout ahead of court trial. |
| UiPath lost 8% | UiPath share price crashed sharply along with growth stocks over anticipation of sharp hike in interest rate by US central bank post spiking inflation data. |
| Unity Software crashed 13% | Unity Software share price sank along with other growth stocks post higher than anticipated inflation data release. |
Why did US stock market crash?
US markets posted their worst day since June 2020 as high inflation hurt sentiments. Nasdaq lost 5.16%, Dow fell 3.94% and SP 500 closed plunged 4.32%.
Why did Tesla share price fall?
Tesla share price fell amid weakness in broader market over anticipation of aggressive interest rate hike by US central bank to control spiking inflation.
What is the rate of inflation in the US right now?
Investor sentiment took a hit after the August consumer price index report showed inflation rising to 8.3% in August, higher than expected.
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