The US stock market experienced a decline on Wednesday, driven by a significant selloff in the tech sector. The Nasdaq fell to its lowest daily close in over a month, with the S&P 500 tech index also reaching its lowest point in the same period. This downturn comes as the world’s biggest IPO, SpaceX, is about to be launched.

Tech Sector Struggles

The tech sector has been under pressure, with the ‘SOX’ chip index losing 13% in the last week. The Nasdaq has fallen five days out of the last six, marking its worst run this year. This decline is attributed to the fading frenzy surrounding AI and tech stocks.

Other factors contributing to the market volatility include rising oil prices and concerns over the Middle East. US President Donald Trump’s threat to hit Iran ‘very hard’ has led to an increase in oil prices, which has further exacerbated the market’s downward trend.

Inflation Concerns

The US consumer inflation rate has surpassed 4%, more than double the Fed’s 2% target. This increase is expected to continue in the coming months, putting pressure on consumers and households. However, monthly core inflation slowed to 0.2% from 0.4%, which may be seen as a positive sign.

The Bank of Japan Governor, Kazuo Ueda, was hospitalized and will miss the bank’s policy meeting next week. This has raised concerns about the bank’s ability to communicate its commitment to further tightening, which could impact the yen’s value.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.