Us Tech Stocks On Track To Their Worst December Closing

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Us Tech Stocks On Track To Their Worst December Closing

US Tech Stocks On Track To Their Worst December Closing Since 2002

It seems that the technology stocks from the USA are on track to close one of their worst December yet. In fact, such a poor performance during December was only last seen at the time of the dot-com buttle burst.

But what's changed for this December? From inflation to recession to interest rate hikes, there's a little bit of everything. But the recent development was the market's optimism that interest rate hikes will slow down by the Fed. But it seems that even hope is now shattered due to the current situation of the labor market.

The recent jobless claims rate from the USA showed that it is currently at very low levels. As a result, the Nasdaq 100 dropped by 2.5% as there's little reason for Fed to move away from its tight policy.

But had the jobless claims increased, it would mean an economic contraction in the USA and may have forced the central bank to lower its policy rate.

In addition, the inflation data was also released, which showed a slightly higher reading than the last one. Once again, that's another solid reason for the Fed to raise interest rates once again.

Similarly, we also for the result of Micron Technologies, which was not good at all. As a result of this, the tech stocks turned bearish, and now the markets are bracing for a possible recession.

The benchmark, which tracks the big companies such as Microsoft and Apple, is already down by 8.93% during December. This drop has also erased the rally we saw during the month of November. At that time, there was hope that inflation was cooling down and the Fed could take a break from its policy.

But given the current circumstances, it seems that Fed has enough reasons to keep doing its thing. This will end up giving strength to the USD but will not be good for the stock market.

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