Micron Drops 5.3% After 172,000 May Jobs Fuel Rate-Hike Fears
Updated
Updated · The Motley Fool · Jun 5
Micron Drops 5.3% After 172,000 May Jobs Fuel Rate-Hike Fears
2 articles · Updated · The Motley Fool · Jun 5
Summary
Micron shares fell 5.3% by 10:45 a.m. ET, underperforming a broad tech selloff that pushed the Nasdaq Composite down 2% and the S&P 500 down 1%.
May nonfarm payrolls rose by 172,000, far above the 80,000 economists expected, reinforcing investor fears that the Federal Reserve could still raise interest rates this year.
Higher-rate worries hit growth stocks hardest because tighter policy can curb valuations and weaken momentum for semiconductor names such as Micron.
Nvidia CEO Jensen Huang recently certified Micron's new high-bandwidth-memory chips for use in its AI accelerators, but that company-specific boost appeared already priced in as macro concerns dominated trading.