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US tech stocks slide after central bank policy shifts

Adobe and Nvidia among those hit as Federal Reserve expected to raise interest rates three times in 2022

US stocks fell on Thursday as shares of some of the largest publicly traded technology companies slid in value after policy decisions from the European Central Bank, Bank of England and Federal Reserve.

The tech-heavy Nasdaq Composite declined 2.5 per cent, its worst day since late September, while the benchmark S&P 500 fell 0.9 per cent, led by declines in the tech sector. Laggards included chipmakers Nvidia and Advanced Micro Devices, two of the best-performing large-cap US stocks of the year, which fell 6.8 per cent and 5.4 per cent, respectively. Tesla, Adobe and Qualcomm also came under pressure, down 5 per cent, 10.2 per cent and 5.9 per cent, respectively.

The moves reversed gains registered on Wednesday, as Jay Powell, Fed chair, struck an upbeat tone about the economy and positioned the US central bank for tighter policy. While fund managers were braced for a hawkish tilt from the Fed, some were encouraged that it was not pitching a more aggressive tightening.

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