Why Snowflake Plunged Today
Shares of cloud data warehouse Snowflake (NYSE: SNOW) plunged on Thursday, down 6.5% as of 12:36 p.m. ET.
Snowflake was maintained at a buy rating by an analyst on Thursday, but that analyst also lowered his price target. Still, given the broad sell-off in growth stocks today, the stock's fall more likely had to do with rising long-term interest rates on Thursday. Additionally, Thursday marked a big stock market options expiration day, which are often volatile days that see traders trying to push stocks around. That's likely happening with Snowflake today, which is hovering right around the $200 mark.
On Thursday, the 10-year Treasury bond yield rose to a fresh yearly high and the highest level since late 2018, to around 2.79%. It's hard to pinpoint an exact reason; retail sales actually came in slightly lower than expected and jobless claims came in slightly higher than expected today (though still at historically low levels), which are signs of a slight cooling in the economy. However, import prices rose 2.6% in just one month, above the 2.2% estimate, and marking the highest one-month increase since 2011. Inflation fears are continuing to seep into the market after other official data came out this week.
Source Fool.com
