Why Nvidia, AMD, and Applied Materials Stocks Dropped Today
Federal Reserve Chairman Jerome Powell warned today that he plans to keep monetary policy tight "for some time," even if it inflicts "some pain" on American businesses and consumers. And it seems that was enough to spook growth stock investors on Friday, with semiconductor stocks featuring heavily among the decliners.
At 2:20 p.m. ET on Friday, shares of Nvidia (NASDAQ: NVDA) reversed course sharply from their surprise rise post-earnings Thursday, and are now down 8.1%. Following in Nvidia's footsteps are shares of its archrival chipmaker Advanced Micro Devices (NASDAQ: AMD) down 5.2%, and Applied Materials (NASDAQ: AMAT), a manufacturer of equipment for making semiconductor chips, down 4.9%.
The Fed chair's comments today seem to be to blame for much of the wide-ranging sell-off in the market, but Nvidia itself bears some of the responsibility here for fanning pessimism in the semiconductor space.
Source Fool.com
