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.
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
In Trump’s Economy Should 401(k) Savers 'Set It and Forget It?'
It’s hard to bury your head in the sand when the markets are volatile. Here’s when it makes sense and when it doesn’t.
By Donna Fuscaldo
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps Up
President Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
By Karee Venema
-
Wall Street Is Worried About Apple Stock. Should You Be, Too?
Analysts expect Trump's sweeping tariffs to have an outsized impact on Apple stock. How concerned should investors be?
By Karee Venema
-
The Stock Market Is Selling Off. Here's What Investors Should Do
Investors started fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
By Karee Venema
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier
-
Stock Market Today: Stocks Skid Into Another Risk-Off Turn
The promise of the AI revolution can't overcome flickering hopes for a "Fed put."
By David Dittman
-
CoreWeave IPO: Should You Buy CRWV Stock?
The CoreWeave IPO was the biggest public offering of the year so far, with the AI cloud company making its market debut on Friday, March 28.
By Karee Venema