Why Dell, HP, and Micron Stocks Tanked Today
Federal Reserve Chairman Jerome Powell warned today that he plans to keep monetary policy tight "for some time," even if it inflicts "some pain" on American businesses and consumers -- and it seems that was enough to spook growth stock investors on Friday.
As of 1 p.m. ET, shares of computer memory maker Micron (NASDAQ: MU) are down 4.4% and PC manufacturer HP (NYSE: HPQ) has dropped 7.8%. Meanwhile, HP rival Dell Technologies (NYSE: DELL) is really taking it on the chin, with an 11% loss.
If the Fed chair's comments were the only thing driving the stock market today, though, these tech stocks might not be suffering so much. With the Fed's targeted interest rate already up more than 2 percentage points so far this year, policy is pretty tight already, and Powell's statement doesn't necessarily mean he plans to keep hiking rates by 75 basis points per raise. There's even some talk that the next rate increase might only be a half a percentage point.
Source Fool.com
