Wall Street Woes: Tech Stocks Tumble Amid Inflation Concerns

Wall Street's major indexes slipped on Wednesday, with technology stocks leading the decline, as investors worried over cautious Federal Reserve rate cuts prompted by persistent inflation. Concerns over impending tariffs from the incoming administration and solid consumer spending data further fueled market volatility.

On Wednesday, Wall Street's major indexes concluded a tumultuous session lower, with technology stocks bearing the brunt of the decline. Leading the drop, the Nasdaq raised alarms as investors speculated on the Federal Reserve's cautious stance towards rate cuts amid lingering inflation concerns in the U.S. economy.

Despite strong consumer spending data for October pointing to robust economic growth, the challenge of lowering inflation persisted. Traders have doubled down on expectations for a 25 basis points rate cut in December, though they foresee stable rates in January and March, according to CME's FedWatch.

Adding to the uncertainty, investors evaluated the impact of President-elect Donald Trump's proposed tariffs on imports and their potential inflationary implications. Tech heavyweights like Dell and HP saw significant stock declines, affecting the Information Technology sector and spreading unease across megacap stocks including Nvidia and Microsoft.

(With inputs from agencies.)