Why Roku, Dutch Bros, and Etsy Stocks Plunged on Friday
A government jobs report was the catalyst for another broad-based sell-off on Wall Street to close out an already volatile week. The data suggested the Federal Reserve will continue to increase interest rates to get runaway inflation under control.
With that as a backdrop, a number of consumer-facing stocks took it on the chin today. Streaming video pioneer Roku (NASDAQ: ROKU) was off by as much as 7.7%, regional coffee chain Dutch Bros (NYSE: BROS) stock was down as much as 5.8%, and handmade goods platform Etsy (NASDAQ: ETSY) was down as much as 4.8%. As of 3:15 p.m. ET, the three were still trading lower, down 6.5%, 4.1%, and 3.8%, respectively. For context, the broader market indexes also slumped, as the S&P 500 traded down 2.9%, while the Nasdaq Composite shed roughly 3.7%.
To be clear, none of these consumer goods purveyors had anything in the way of company-specific news fueling the declines. Rather, the jobs report stoked investor fears that continued high inflation would result in additional interest rate hikes, which will ultimately curb consumer spending, weighing on these stocks.
Source Fool.com