Why Nvidia, Amazon, and Salesforce.com Fell Today
Shares of leading large-cap growth tech stocks Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), and Salesforce.com (NYSE: CRM) all fell today, with each down nearly 3% in intraday trading, before recovering to losses between 1% and 2% as of 3:50 PM EDT.
Technology growth stocks that trade at relatively high multiples have been some of the worst-hit names this year, as the Federal Reserve raises interest rates in a bid to tame inflation. That's leading to a double whammy for high-growth stocks, as higher rates compress these companies' price-to-earnings valuations, while investors also fear rising interest rates will slow growth going forward.
Tech stocks have been nearly the mirror image of bond yields this year, as technology stocks have cratered while bond yields have risen dramatically in a short amount of time.
Source Fool.com
