Amd Down As Fed Rate Cut Stalls

last updated on

Amd Down As Fed Rate Cut Stalls

Advanced Micro Devices (Amd) Down By 8.3% As Fed Rate Cut Stalls

The stock prices of Advanced Micro Devices (AMD) took a hit on Thursday after the Fed officials gave hawkish comments. This led to a slide of almost 8.26% in the AMD stock, as an environment of high interest rates is not suitable for AMD.

Nvidia Down By 1%

The hawkish comments also sent the NASDAQ lower as it reversed direction from a 1% gain to around -1.4% loss. Similarly, the stock indexes such as the S&P 500 and the DJIA also dropped by 1.23% and 1.35%, respectively.

After the decline, AMD stock closed the day at $165.83, its daily low and a level only last seen on 20th February. The decline came even after the reports that semiconductor sales during February were higher than last year.

The downtrend in the Advanced Micro Devices (AMD) stock also continued during the after-hours trading. If we look around, the Super Micro Computer (SMCI) and Nvidia also lost 3.44% and 5.67% of their values.

The key catalyst that has caused most of the tech stocks to fall is the comments from Fed Neel Kashkari. According to him, the drop in inflation has stalled, which is enough reason to postpone the rate cuts.

Fed president from Cleveland also shared the same sentiment, as she believes more evidence (economic data) is needed before cutting borrowing costs. Before these comments, the market believed that the June or July meeting would deliver us a rate cut.

To make things worse, the Fed, Austan Goolsbee, also highlighted how there's still not enough evidence that the inflation will reach the 2% target. As a result, the markets can forget about any rate cuts for now.

The news sent most of the indices down with a decline of more than 1% across the board. It appears that the positive news from the semiconductor sector was still not enough to uplift AMD, Nvidia, and other tech stocks.

Trending Stories