U.S. stocks were on the decline on Thursday, phasing out the tech boom on the back of Nvidia’s strong quarterly earnings after the Federal Reserve suggested that interest rates may have to remain higher for longer in an effort to keep inflation under control. The tech-heavy Nasdaq Composite Index declined by 1.9% while the S&P 500 fell by 1.35%. The Dow Jones was down by around 1%.
Boston Fed President Susan Collins claimed that there is an extreme likelihood that the Federal Reserve will keep interest rates higher for longer. “I think that it’s going to take some time to really be sure that we are seeing the sustained realignment of demand and supply that is needed in order to bring inflation back on a path that will get back to 2% [in] a reasonable amount of time,” Collins said in an interview from the Jackson Hole Economic Symposium in Wyoming.
This stock reversal comes after a tech boom spurred by Nvidia. The chipmaker beat Wall Street expectations with reported revenue of $13.51 billion, a 101% jump from last year. The company’s stock later surged by 8%.