Cisco Shares Slide 6% as Nasdaq Drops 4.2% on Rate-Hike Fears
CSCO•Cisco shares fell 6% in a market rout triggered by a hotter-than-expected payrolls report igniting renewed rate-hike fears, outpacing the Nasdaq’s 4.2% decline. The chip sector led losses with Intel off 11% and Broadcom down 8%, driving the worst semiconductor index drop since April 2025.
1. Market Rout Hits Cisco
Cisco shares plunged 6% on Wednesday as the Nasdaq composite tumbled 1,121 points (4.2%) following a hotter-than-expected payrolls report that stoked fresh rate-hike fears. The stock’s decline outpaced both the broader market and the tech sector’s 6.7% drop.
2. Deep Slump in Semiconductors
Semiconductor names led the selloff, with Intel off 11%, Applied Materials down 10% and Broadcom sliding 8%, marking the worst daily performance for the sector since April 2025. Cisco’s wider drop reflects the broader sector’s sensitivity to higher borrowing costs and slowing demand.
3. Fed Rate Outlook Clouds Tech Demand
Investors are bracing for potential Fed action after sustained payroll growth, raising borrowing costs for corporate investments and weighing on tech capital expenditure. Cisco faces pressure on its enterprise hardware sales as customers may delay spending amid a tighter rate environment.
