Nasdaq slides over 1% as growth stocks fall after hawkish Fed drives up yields

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Sept 21 - Nasdaq led declines in key Wall Street indexes on Thursday as a jump in Treasury yields knocked down growth stocks after the Federal Reserve signaled that another rate hike was in the offing this year.

The report also said Google had been working to replace Broadcom as the supplier for networking chips used in its data centers with Marvell Technology which rose 0.9%.The U.S. central bank delivered a widely anticipated pause on Wednesday and revised economic projections higher with warnings that the battle against inflation was far from over, prompting a weak session for Wall Street.

Adding to rate jitters, U.S. jobless claims unexpectedly fell last week, while the Philadelphia Fed's business conditions index reading showed a worse-than-expected drop in September, fueling recession concerns. Traders' bets on the benchmark rate remaining unchanged in November and December stood at 72% and 53%, respectively, according to CME's FedWatch tool.

Instacart fell 5.1% briefly slipping below its IPO price of $30 per share, while Arm Holdings shed 3.4% to $51.1, nearing its IPO price of $51 per share.

 

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