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Tech Sinks Stocks in Reversal After Post-Fed Rally: Markets Wrap

  • FedEx climbs in late trading as profit beats analyst estimates
  • Pound gains after BOE shocks traders with interest-rate hike
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WATCH: the BOE voted 8-1 to raise the benchmark interest rate to 0.25%.Source: Bloomberg
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Technology companies drove stocks down on speculation that rate hikes will reduce the appeal of the highly valued industry that has powered the bull market in equities.

The Nasdaq 100 sank the most since September, led by losses in giants like Apple Inc. and Tesla Inc. Software company Adobe Inc. tumbled 10% on disappointing revenue forecasts, while a gauge of chip stocks slumped over 4%. The S&P 500 erased gains that were earlier triggered by bets central banks can tighten policies to fight inflation without derailing the economy. Financial and commodity shares rose. Bitcoin slid. FedEx Corp. climbed in late trading after profit beat estimates.