Why Arm Holdings Stock Was Falling Today
Shares of Arm Holdings (NASDAQ:ARM) were falling today amid a broader sell-off in tech and chip stocks after the September Consumer Price Index (CPI) came in hotter than expected.
That was enough to send tech stocks swooning as it makes it more likely that the Fed will raise interest rates at its next meeting later this month.
Arm is especially sensitive to interest rates because most of the stock’s value comes from earnings that are several years into the future, as investors are betting on strong profits from its new AGI CPU, which has yet to go on sale.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.