Tech Tumble: Wall Street Feels Inflation Heat

Wall Street's major indexes fell, with Nasdaq leading declines due to tech stock slumps. Concerns over inflation and Federal Reserve rate cuts pressured markets. Investors grappled with potential impacts from President-elect Trump's tariff policies. Indexes like the S&P 500 and Dow saw losses, while the Information Technology sector lagged.

Wall Street's primary indexes ended in the red Wednesday, with Nasdaq taking the lead in losses due to a drop in tech stocks. The downturn occurred on the eve of Thanksgiving as apprehensions about potential Federal Reserve hesitancy on rate cuts loomed, fueled by persistent inflation challenges in the U.S.

Economic data indicated a strong rise in consumer spending during October, continuing the robust pace of U.S. economic growth. Yet, inflation control efforts seemed to falter. Consequently, traders speculated that the Fed might cut 25 basis points at December's meeting, but expected rates to remain static in January and March.

Investors also navigated President-elect Donald Trump's Monday announcement of impending tariffs on imports from Mexico, Canada, and China, which could impact the economy. These factors, along with the Fed's decisions, weighed heavy on tech giants like Nvidia and Microsoft, pushing the sector lower.

(With inputs from agencies.)