US Market today: Why did Nasdaq crash after the US Fed rate hike
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What happened in the US stock market today?
- US stocks ended lower on Wednesday. Nasdaq down 1.79%, S&P 500 dropped 1.71% and Dow Jones declined 1.7%.
- Investors' sentiments took a hit after the US Central Bank raised interest rates by 0.75%, and indicated that it will hike rates further to fight inflation.
- Hotel-and-casino giant Caesars plunged 8% amid a selloff in travel and entertainment stocks post rate hike.
- Megacap growth tech stocks took a plunge with Apple, Amazon and Meta closing up to 3% lower.
- All S&P 500 sectors ended in the red, with consumer discretionary, communication services, materials being the worst hit.
US stock market today: Top gainers and losers
| Stock price action | Reason behind the move |
|---|---|
| Adobe fell 2% | Adobe share price extended fall, driven by analysts' high valuation concerns over $20 billion acquisition plan of Figma. |
| Amazon fell 3% | Amazon share price extended fall amid reports of IRobot deal facing regulatory hurdles, leading a delay in approval. |
| Apple fell 2% | Apple share price fell along with other big tech stocks post US central bank's 0.75% interest rate hike. |
| ARK Innovation ETF fell 3% | ARK Innovation ETF price fell, driven by the losses in underlying growth stocks of Roku, Block and Tesla. |
| Bank Of America fell 3% | Bank Of America share price fell along with financial stocks after the US central bank's decision of 0.75% interest rate hike. |
| Berkshire Hathaway fell 2% | Berkshire Hathaway share price fell along with financial stocks after the US central bank's decision of 0.75% interest rate hike. |
| Coinbase ended flat | Coinbase share price ended flat tracking the cryptocurrencies prices after the US central bank's decision of 0.75% interest rate hike. |
| Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF fell 4% | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF price fell driven by losses in energy stocks of Antero Resources and Marathon Petroleum. |
| Direxion Daily Semiconductor Bull 3X Shares ETF fell 3% | Direxion Daily Semiconductor Bull 3X Shares ETF price fell, tracking the losses in chip stocks of Intel and Texas Instruments. |
| Direxion Daily Technology Bull 3X Shares ETF fell 5% | Direxion Daily Technology Bull 3X Shares ETF price fell driven by losses in the shares of Mastercard, Visa and Apple. |
| Ford ended flat | Ford share price ended after falling 12% since start of this week driven by reports of $1 billion hit on revenue from inflation and delivery delays. |
| Global X Lithium & Battery Tech ETF fell 1% | Global X Lithium & Battery Tech ETF price fell tracking lithium prices and losses in underlying stock of Albemarle Corporation. |
| Google (Alphabet) fell 2% | Google (Alphabet) share price fell along with big tech stocks after the US central bank's decision of 0.75% interest rate hike. |
| Intuit fell 2% | Intuit share price extended losses driven by short interest amid reports of management, hedge funds selling stock. |
| Invesco NASDAQ 100 ETF fell 2% | Invesco NASDAQ 100 ETF price fell tracking the losses in tech stocks after the US central bank's decision of 0.75% interest rate hike. |
| Invesco QQQ Trust Series 1 fell 2% | Invesco QQQ Trust Series 1 ETF price fell tracking the losses in tech stocks after the US central bank's decision of 0.75% interest rate hike. |
| JPMorgan fell 3% | JPMorgan share price fell along with financial stocks after the US central bank's decision of 0.75% interest rate hike. |
| Mastercard fell 3% | Mastercard share price fell along with other financial stocks after the US central bank's decision of 0.75% interest rate hike, reports of potential regulatory actions over 'Buy Now Pay Later' business. |
| Meta (Facebook) fell 3% | Meta (Facebook) share price fell along with big tech stocks after the US central bank's decision of 0.75% interest rate hike. |
| Microsoft ended 1% lower | Microsoft share price fell over reports of ongoing legal hurdle in UK for its $69 billion deal of acquisition of Activision. |
| Netflix fell 2% | Netflix share price ended lower along with big tech stocks after the US central bank's decision of 0.75% interest rate hike. |
| Nike fell 3% | Nike share price extended fall post weak growth forecast, downgrade by Barclays. Stock down 7% since start of this week. |
| Nio crashed 10% | Nio share price fell along other China stocks, driven by geopolitical concerns due to Russia's ties to China, more potential lockdowns and a Fed rate hike decision. |
| PayPal ended flat | PayPal share price ended flat after the US central bank's decision of 0.75% interest rate hike. |
| ProShares Ultra Semiconductors fell 1% | ProShares Ultra Semiconductors ETF price fell tracking the losses in chip stocks of Intel and Texas Instruments. |
| ProShares UltraPro S&P 500 ETF lost 5% | ProShares UltraPro S&P 500 ETF price extended decline after the US central bank's decision of 0.75% interest rate hike. |
| Roblox fell 2% | Roblox share price extended fall over weaker than anticipated August month numbers for daily active users and revenue. |
| S&P 500 ETF fell 2% | S&P 500 ETF price fell tracking the losses in S&P 500 index after the US central bank's decision of 0.75% interest rate hike. |
| Shopify ended 1% lower | Shopify share price extended fall after Morgan Stanley raised concerns over short term growth outlook, growing competition. |
| Tesla fell 3% | Tesla share price ended lower after the US central bank's decision of 0.75% interest rate hike. |
| Vanguard S&P 500 ETF fell 2% | Vanguard S&P 500 ETF price fell tracking the losses in S&P 500 index after the US central bank's decision of 0.75% interest rate hike. |
| Vanguard S&P 500 Growth ETF fell 2% | Vanguard S&P 500 Growth ETF price fell tracking the losses in growth stocks after the US central bank's decision of 0.75% interest rate hike. |
| Visa fell 3% | Visa share price fell along with other financial stocks after the US central bank's decision of 0.75% interest rate hike. |
Did US Fed hike interest rates?
The US Central Bank raised interest rates by 0.75%, and indicated that it will hike rates further to fight inflation.
Why is Nio share price crashing?
Nio share price fell along other China stocks, driven by geopolitical concerns due to Russia's ties to China, more potential lockdowns and a Fed rate hike decision.
Why did JP Morgan stock fall?
JPMorgan share price fell along with financial stocks after the US central bank's decision of 0.75% interest rate hike.
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