AIThe Motley Foolabout 2 hours ago
Why Nvidia, Intel, Marvell, and Other AI Stocks Plunged Today
1 min read
Nvidia, Intel, Marvell, and other AI stocks fell on Friday due to a strong jobs report that sparked fears of interest rate hikes. The report showed U.S. nonfarm payrolls rose to 172,000, exceeding the consensus estimate of 80,000. This makes it harder for the Federal Reserve to justify rate cuts, which can stoke inflation and overheat the economy. AI stocks are sensitive to interest rate movements, with investors discounting future profits at a higher rate when rates rise.
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