Why C3.ai Stock Sank Again Today
Shares of C3.ai (NYSE: AI) slumped again on Tuesday, ending the daily trading session down 4.7%. Meanwhile, the S&P 500 index fell 1.4% and the even more-tech heavy Nasdaq Composite index closed out the daily session down 2%.
While there doesn't appear to have been any business-specific news pushing C3.ai's stock lower today, it's not surprising to see the artificial-intelligence (AI) specialist's share price fall in conjunction with momentum for the broader market. Growth-dependent tech stocks saw an explosive rally last week after Federal Reserve Chair Jerome Powell hinted at a smaller interest rate hike this month, but market sentiment has flipped again early this week -- and renewed expectations for continued macroeconomic pressures have kicked off fresh rounds of bearish trading.
The Fed has delivered four consecutive 75-basis-point rate hikes, with the last one arriving at the beginning of November, and the rapid increases have been crushing valuations for growth stocks. Analysts broadly expect the Fed to deliver a 50-basis-point increase when the central banking authority has its next meeting on Dec. 14, but concerns that the central banking authority will continue to deliver substantial rate hikes in order to combat inflation and trigger a prolonged recession have investors feeling skittish. The market's most recent bearish turn has now erased the gains that C3.ai stock posted on the heels of Powell's seemingly bullish comments last week.
Source Fool.com
