Intel Plunges 11% as Nasdaq Slides 4.2% After Strong Jobs Data
INTC•Intel shares plunged 11% as the Nasdaq Composite dropped 4.2% following a hotter-than-expected payrolls report that raised Fed rate hike prospects. Broadcom fell 8% and Applied Materials lost 10% as a broader chip sell-off led the tech-heavy Nasdaq to its worst day since April last year.
1. Major Market Rout
The Nasdaq Composite tumbled 4.2%, marking its steepest one-day decline since April of last year, as a stronger-than-expected payrolls report reignited concerns about further Federal Reserve rate increases. The index lost over 1,120 points at the close, with technology and semiconductor stocks leading the downturn.
2. Semiconductor Sector Carnage
Semiconductor names faced severe losses, with Intel shares plunging 11%, Applied Materials down 10% and Broadcom off 8%. Even high-flying names such as Marvell and SanDisk shed double-digit percentages, illustrating the breadth of the sell-off within chipmakers.
3. Interest Rate Fears Drive Sell-Off
Investors interpreted the hot jobs data as a signal that interest rates may remain higher for longer, prompting a rotation out of growth and technology sectors. The prospect of more rate hikes weighed heavily on valuations, particularly for capital-intensive chip companies.
