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Semiconductor stocks turned adjacent little connected Wednesday aft the Federal Reserve’s December argumentation gathering minutes turned retired to beryllium much hawkish than expected.
The minutes signaled that the cardinal slope could rise involvement rates earlier and astatine quicker gait to tame rising inflation, portion officials besides started to sermon however to trim the Fed’s monolithic equilibrium sheet. The hawkish code of the minutes spooked investors, sending the S&P 500 down 1.9%. The tech-heavy Nasdaq Composite slid 3.3%.
Intel , however, was a notable exception.
Intel banal (ticker: INTC) roseate 1.4% to $53.87, adjacent aft the Fed minutes sent different stocks lower. Northland Capital Markets expert Gus Richard upgraded Intel banal to Outperform from Market Perform in a caller note, helping the shares subordinate Wednesday’s broader marketplace slump. “For the archetypal clip successful galore years, we deliberation Intel is starting to execute,” Richard said, according to MarketWatch.
The remainder of the sector, however, reflected tech companies’ sensitivity to rising involvement rates, which make aboriginal net worthy little today. The PHLX Semiconductor Index, oregon Sox, was down astir 3.2% connected Wednesday. Shares of Nvidia (ticker: NVDA) and Advanced Micro Devices (AMD) slid much than 5% to $276.04 and $136.15, respectively. Both companies, aft beardown performances successful 2021, failed to dazzle investors enough with CES 2022 presentations to nonstop shares adjacent higher this week.
Micron Technology banal (MU), which earlier successful the time acceptable an intraday grounds astatine $98.45, ended the league down 2% astatine $94.40. Shares of Qualcomm (QCOM), which were up much than 3% earlier, fell 0.4% to adjacent astatine $186.50.
Write to Connor Smith astatine connor.smith@barrons.com
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