Why Applied Materials Fell 9.4% on Thursday
Shares of Applied Materials (NASDAQ: AMAT) fell as much as 9.4% in trading on Thursday as positive economic news and data out of China caused the market to fall. Shares were still down 8.2% at 3 p.m. ET.
There were a number of factors impacting Applied Materials and semiconductor and industrial stocks more broadly. There was macro news like the final estimate of third-quarter GDP growth of 3.2% in the U.S., above the previous estimate of 2.9%. This is causing investors to speculate that interest rates will continue rising to combat a hot economy and inflation.
Specific to the chip industry, Micron (NASDAQ: MU) said there will be a supply-and-demand imbalance in 2023 and that it's cutting 10% of the workforce. Data from China also indicated that imports of semiconductor equipment fell 40% in November from a year earlier due to U.S. export restrictions.
Source Fool.com
