Wall Street Ends Lower as Tech Shares Fall - The Star

💡 Tech shares led the decline on Wall Street as investors reassess growth prospects.

The US stock market closed lower on Wednesday, with the tech-heavy Nasdaq Composite down 5.1% for the day. The decline was largely driven by $NVDA, which fell 12.5% after the chipmaker announced weaker-than-expected earnings.

Tech Sector Weighs on Market

Investors are growing increasingly concerned about the tech sector's ability to maintain its rapid growth pace. $AAPL, another major tech player, fell 3.2% as the company's earnings failed to meet expectations.

Economic Growth Slows

The US economy is showing signs of slowing down, with the Atlanta Federal Reserve's GDPNow model estimating a 2.3% annualized growth rate for the second quarter. This represents a significant decline from the 3.2% growth rate seen in the first quarter.

Inflation Concerns Persist

Despite the slowdown in economic growth, inflation concerns remain a major issue for investors. The US Consumer Price Index (CPI) rose 0.4% in May, with energy prices driving the increase. This has led to increased speculation that the Federal Reserve may need to raise interest rates to combat inflation.

What It Means for Investors