Investing.com – Technology shares were big losers in Wednesday’s broader market selloff as worries over inflation gripped market players.
April consumer prices ran up 4.2% from a year ago, the fastest acceleration since 2008 and higher than the expected 3.6% as per a Dow Jones estimate.
While the Fed has on more than one occasion said it was focused on employment and that it was comfortable with an inflation rate higher than its target of 2%, a reading this high is causing anxiety.
Barring Netflix (NASDAQ:NFLX), the other FAANG stocks were all down around 2% each. Alphabet (NASDAQ:GOOG) was down just over 2%. Netflix fell 1.7%.
Tech shares have been under pressure lately after reporting record numbers for the last quarter. Worries over high inflation, privacy concerns around sharing of users’ data, and fears of higher regulatory scrutiny in the U.S. and Europe to curb their market dominance have kept these shares under pressure.
Another worrying factor has been the shortage of chips amid booming consumer demand for gadgets, electronic devices and electric cars.
Elsewhere in tech, shares of Intel (NASDAQ:INTC), NVIDIA (NASDAQ:NVDA), Qualcomm (NASDAQ:QCOM), AMD (NASDAQ:AMD) and NXP (NASDAQ:NXPI) were all down 2% to 4%.