Global stock markets reversed yesterday’s gains after the Bank of England somewhat unexpectedly became the first G7 nation to hike interest rates.
The Chancellor increased the cash rate from 0.1% to 0.25% on concerns of sustained inflation which was sitting around 5.1%.
This was bad news for global tech with many now expecting other major developed nations to hike rates, sending the Nasdaq down 2.5%.
The key detractors were NVIDIA (NASDAQ: NVDA), down 6.8%, Amazon (NASDAQ: AMZN) down 2.5%, Netflix (NASDAQ: NFLX) down 2.3%, and Tesla (NASDAQ: TSLA) down 5%.
On the positive side, the European Central Bank extended their bond-buying program over the winter break, as they seek to support a slowing economy hit by the Omicron outbreak.
The Dow Jones finished flat and the S&P 500 down 0.9% as investors once again turn to more cyclical, short-duration businesses.
Adobe (NASDAQ: ADBE) shares fell 10% again despite reporting an increase in fourth-quarter sales and over 20% growth in both digital experience and digital media revenue.
