Yahoo Finance Live's Jared Blikre breaks down how stocks are moving as U.S. recession concerns continue to linger.
Semiconductor stocks have been down in the dumps this year amid the broader stock market sell-off, and it now appears that a potential slowdown in chip demand is going to further weigh on the sector. The PHLX Semiconductor Sector has already shed close to 40% of its value in 2022. Not surprisingly, high-flying chipmakers Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU), which were enjoying a terrific run on the stock market until last year, have witnessed a brutal sell-off this year.
The Federal Reserve has already raised interest rates three times this year in an effort to stamp out inflation, and it started reducing its balance sheet in June as another means of cooling the overheated economy. Unfortunately, rampant inflation has already taken a toll on the stock market. The benchmark S&P 500 and tech-heavy Nasdaq Composite have plunged 20% and 29.5%, respectively, from all-time highs.