Qualcomm and Nasdaq Crumble on Rate Hike Fears

May's consumer price index hit a three-year high, sparking a surge in Fed rate hike expectations. Rate-sensitive Nasdaq and semiconductor stocks faced intense selling pressure. Qualcomm plunged 6.9%, while Marvell fell 5.3%, leading a broad-based rout in large-cap semiconductors.

• May CPI hits three-year high, rate hike expectations jump; Nasdaq -2.0%, semiconductor sector -3.7% nosedives

• Oil climbed 4.0% on Iran tensions, but rate hike expectations overpowered tech selloff momentum

• June 11 PPI and June 15 industrial production data emerge as crucial variables for the Fed's next moves

Tech Rout Rooted in Rate Hike Fears 📉 As May CPI hit three-year highs, markets repriced Fed rate hikes, sending Nasdaq—centered on rate-sensitive tech—crashing 2.0%.

• May CPI marked three-year high, intensifying Fed rate hike expectations across markets

• Rising rates compress the present value of distant future earnings; semiconductor and AI stocks—dependent on long-duration growth—faced concentrated selling

• Semiconductors -3.7%, Nasdaq -2.0%, S&P 500 -1.6% reveal divergent damage; VIX surged 11.8%, signaling deepening fear

• June 17 retail sales result will be the inflection point for whether consumer spending is slowing

Oil Surges 4% as Iran Tensions Spike ⚡ US-Iran military tensions intensified, lifting crude 4.0% and reigniting inflation concerns across markets.

• Trump administration hardened its Iran stance, exacerbating Middle East geopolitical risk

• Oil spike expands energy inflation, compounding May CPI pressures and reviving Fed rate hike scenarios