Why Wolfspeed Stock Is Plummeting Today
(NYSE: WOLF) stock is seeing big sell-offs in Friday's trading. The silicon carbide specialist's share price was down 12.8% as of noon ET. Meanwhile, the S 500 index was down 1.8%, and the Nasdaq Composite index was down 2.1%.
Wolfspeed stock is getting hit hard following the latest jobs report from the Bureau of Labor Statistics (BLS). The report for December showed that 256,000 jobs were added in the month, far exceeding the 155,000 job additions that economists had forecast. The data could make it less likely that the Federal Reserve will cut interest rates.
Higher-than-expected jobs growth might seem like a bullish indicator, but the trend has to be viewed through the lens of inflation. Interest rates have been kept relatively high in order to tamp down on inflationary pressures, and the hope that rates will continue to brought lower this year has been a key factor in recent bullish momentum for the stock market. Today's jobs report suggests that the U.S. economy may still be running hot and suggests that the Federal Reserve could be hesitant to cut interest rates.
Source Fool.com
