Why Super Micro Computer Stock Plummeted This Week
Super Micro Computer (NASDAQ: SMCI) stock lost ground over the last week of trading. The company's share price closed out Friday's session down 13.3% from the previous week's close, according to data from S&P Global Market Intelligence.
Supermicro's share price fell over the last week of trading as interest rate news from the Federal Reserve caused investors to shift their approach to stocks. While the Fed delivered the 25-basis-point interest rate cut that the market had anticipated, Chair Jerome Powell gave commentary that spooked investors.
The Fed held its latest meeting on Wednesday and delivered its third rate cut since September. The move lowered the benchmark interest rate to 4.25%, which is down from the recent high of 5.25% first established in July 2023. While higher interest rates are a way to combat inflation, they tend to produce weaker performance for the stock market.
Source Fool.com
