Tech sell-off deepens as US inflation data stokes rate-hike fears
A broad sell-off in technology stocks pulled global markets lower this week as higher-than-expected US inflation figures increased expectations the Federal Reserve will raise interest rates again.
What happened
Tech and Asian stocks have been volatile as investors reacted to forecast-topping US inflation data. US wholesale inflation surged 6.3% year-on-year in September, the biggest jump since 2022, driven partly by rising petrol prices amid the war with Iran. The data increased expectations the Federal Reserve will hike interest rates at its 28 October decision, weeks before the US midterm elections. On Thursday, the Nasdaq Composite shed 0.3%, with chip stocks particularly hard hit: Nvidia fell 2.2%, AMD and Marvell both down around 4%, and CoreWeave down 3.6% after a 15.5% plunge the previous day. By Friday, the sell-off accelerated: the S&P 500 fell 1.1%, the Nasdaq sank 2.1% for its first weekly loss in five weeks, capping the market's worst week since late June. Chip companies including Micron, AMD, Broadcom and Intel all fell between 4.5% and 6%. Tech firms rely heavily on borrowing for AI investments, making them particularly sensitive to rising interest rates. In Asia, Seoul's Kospi dived more than 8% before a trading halt, with semiconductor firms SK hynix down 11% and Samsung down 9%. Tokyo fell close to 5%. The Dow held up better, rising on Thursday and down only 0.3% on Friday as investors rotated into established sectors.
Key facts
- US consumer price index jumped to 3.7% in September
- US wholesale inflation 6.3% year-on-year, largest increase since 2022
- Federal Reserve decision due 28 October
- Nasdaq fell 2.1% for the week
- Seoul's Kospi fell over 8% before trading halt
What happens next
Federal Reserve policy decision due 28 October.
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Coverage across the news outlets we track, as at publication.
Where the outlets differ
1News frames the story around Friday's accelerating sell-off and weekly losses, opening with the S&P 500 and Nasdaq's poor week. The NZ Herald leads with Thursday's trading, emphasizing the rotation between sectors (tech falling while the Dow rose) and citing analyst commentary on the inflation data's impact. 1News provides more detail on individual stock movements and energy markets, noting oil's rise due to Iran tensions.
What outlets are saying
NZ Herald
Tech sell-off rolls on as hot inflation data stokes rate worries
Seoul’s Kospi fell 7.6% after briefly triggering a trading halt.
1News
US markets weighed down by extended sell-off in tech sector
A broad sell-off in technology companies pulled stocks lower on Wall Street Friday, capping off the market’s worst week since late June.