3 Big Tech Companies Fell Today

This morning, after the US commerce department reported its latest inflation figures, which showed inflation is still persistently high, shares of Amazon, Apple and Nvidia showed a fall.

The report showed that the core personal consumption index rose 4.7% in May, slightly less than expected, but still a four-decade high.

After today’s report, tech investors could see that Amazon fell 3.5%, Apple 2.4%, and Nvidia 2.2%. 

So, what’s all this about

The core personal consumption expenditures index is one of the main measurements that the Federal Reserve uses to track inflation, and while it fell slightly in May compared to the previous quarter and was below the 4.8% that some experts were expecting, it still shows that inflation is stubbornly high.

The Federal Reserve’s interest rates have been going up to try and control inflation, causing tech stocks to fall hard, and after today’s news, investors of Amazon, Apple, and Nvidia may not have a very optimistic view of what to come.

The Federation is likely to continue to make aggressive rate hikes, including a potential 50- or 75-basis-point hike at the officials’ next meeting in July.  

What to do

Of course, there’s no guarantee of a recession, but that isn’t stopping investors from cashing out on tech stocks and placing their money on safer bets.

Until the federation is able to control the inflation, the fear of a recession will likely pressure big tech company shares.

Until investors are able to know when this could happen, shares of these stocks will remain volatile.