Stock Market Today: Tech Trounced as Fed Elation Fades
Semiconductor stocks and other technology-sector shares took a nosedive Thursday to lead the major indexes lower.


A day after rallying on the Federal Reserve's latest policy announcements, the stock market took a rapid 180, with technology stocks (-2.8%) in particular falling off a cliff.
Giving the sector a bit of a shove Thursday was Europe, where both England and Norway's central banks raised their benchmark interest rates – by 15 basis points to 0.25%, and by 25 basis points to 0.5%, respectively. (A basis point is one one-hundredth of a percentage point.)
That provided a spark for at least some of the selling in technology, which also has been trading at extremely lofty levels of late. At nearly 27 times forward earnings estimates, tech is the second most expensive sector and far frothier than the S&P 500's 20.5 ratio.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Mega-cap names Apple (AAPL, -3.9%) and Microsoft (MSFT, -2.9%) accounted for significant chunks of losses in the major indexes. Chip stocks were brutalized, too.
"Reports that Apple is potentially taking wireless chip production in-house is adding to the weakness in multiple [semiconductor] components," says Michael Reinking, senior market strategist for the New York Stock Exchange. Skyworks Solutions (SWKS, -8.5%) and Xilinx (XLNX, -8.2%) were among the weakest performers in the semiconductor industry.
That led to deep pain for the Nasdaq Composite, which retreated 2.5% to 15,180. The S&P 500 lost 0.9% to 4,668, and strength in cyclical sectors limited the Dow Jones Industrial Average to a marginal decline to 35,897.
Other news in the stock market today:
- The small-cap Russell 2000 sank 2.0% to 2,152.
- U.S. crude oil futures managed a 2.1% gain against the grain, settling at $72.38 per barrel.
- Gold futures gained 1.3% to $1,788.10 after the U.S. dollar shrank back.
- Some of the air came out of Bitcoin, too, with the cryptocurrency declining 2.7% to $47,913.61. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
Look to Real Estate for Stability in 2022
The traditional wisdom goes that rate hikes can adversely affect dividend-yielding stocks. After all, the thinking goes: If you can get comparable income from bonds, which are typically less risky than equities, why wouldn't you opt for the relative safety of debt?
Real estate investment trusts (REITs), however, typically act as the exception, not the rule, with S&P Global noting that during the majority of periods of significantly rising rates, REITs have either matched or beaten the S&P 500.
And there are other reasons to believe that 2022 could be a good year for REITs.
"As commercial activity and day-to-day life normalize, demand for commercial and residential real estate space will continue to recover," says State Street Global Advisors. "Combined with higher rent inflation in 2022, this supports REIT dividend growth and potential valuation appreciation."
In our latest look-ahead for investors positioning themselves for 2022, we explore the real estate sector. Read on as we analyze 12 of the best REITs for 2022 – picks that offer a mixture of below-average valuations, above-average yields and some growth potential.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
The ‘First Year of Retirement’ Rule
The 'first year of retirement' rule says the 12 months after you leave work set the tone for your entire later life — so it's vital to approach them mindfully.
-
Tech Stocks Drag This Growth Fund Down
A rough stretch for mega-cap tech and tech-adjacent names has put pressure on this Mairs & Powers mutual fund.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: "Good Trump" Gives Dow 740-Point Boost
Friday's headwind was Tuesday's tailwind, as President Trump's social media posts continue to drag and drive financial markets.
-
A Case Study in Mismatched Fund Returns
Stock Market Why do a fund's returns sometimes differ from its underlying index? A longstanding legal principle holds the key.
-
Stock Market Today: Stocks Drop as Trump Takes Aim at EU, Apple
The commander in chief issued new tariff threats against the European Union and the iPhone maker.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade Deal
The two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend Negotiations
Investors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.