Why Cognizant Technology Solutions Stock Tanked 13% Today
Shares of Cognizant Technology Solutions (NASDAQ: CTSH) were down 12.8% today at market close. It wasn't alone in getting severely punished. The Nasdaq Composite Index was down 5% as investors assessed the Federal Reserve's decision to increase interest rates by 0.5% yesterday and indicated more such moves were possible in the coming months in an effort to fight inflation.
As a reminder, higher interest rates lower the value of risk assets like stocks. That, at least in part, explains the widespread pain on Wall Street today.
Image source: Getty Images.
Source Fool.com
