NEW YORK (dpa-AFX) – The prospect of a tighter monetary policy to combat inflation sent the economically sensitive US technology stocks plummeting on Tuesday. The leading index Dow Jones Industrial came under less pressure. The expectation of further sanctions by the West against Russia also caused uncertainty.
The Dow closed 0.80 percent lower at 34,641.18 points. The broader S&P 500 fell 1.26 percent to 4525.12 points. After the significant gains at the beginning of the week, the technology-heavy Nasdaq 100 fell by 2.24 percent to 14,820.64 points.
US Federal Reserve Vice Chairman Lael Brainard told a Minneapolis regional Fed event that reducing inflationary pressures was “a priority”. Brainard announced a “series” of rate hikes. Higher interest rates lead to rising financing costs, especially for high-growth tech companies. From May, they also want to start a rapid reduction in the total assets, which had massively expanded during the corona pandemic, Brainard continued./la/he
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