What happened
Shares of Nvidia (NVDA 3.17%) were tumbling this afternoon as investors grew increasingly concerned about high-growth technology stocks.
The tech stock had dropped by 5.5% as of 2:59 p.m. ET.
So what
Tech investors have been jittery this week ever since Netflix released disappointing quarterly results in which the streaming giant lost 200,000 subscribers.
Image source: Getty Images.
While Nvidia and Netflix don't have similar businesses, both are technology companies, and investors are advancing their pessimism about Netflix toward other tech stocks, including Nvidia today.
Additionally, investors are digesting a couple of other bits of news today, including the fact that Federal Reserve Chairman Jerome Powell said this afternoon that an interest rate hike of 50 basis points was "on the table" at the Fed's upcoming meeting next month.
The Federal Reserve is trying to tame inflation, which is currently at a 40-year high, and some investors are getting nervous that big moves by the Fed could slow down the economy or even push it toward a recession.
Nvidia investors were already on edge today after Deutsche Bank analyst Ross Seymore lowered his price target for the company's stock yesterday from $285 to $255.
Now what
It's not all that surprising that Nvidia's stock was falling today, along with many other technology stocks, considering that the broader Nasdaq Composite was down by 1.4% as of this afternoon.
Long-term Nvidia investors may want to prepare for some more volatility ahead as investors process ongoing news about the Federal Reserve raising interest rates, rising inflation, and concerns about how high-growth stocks will handle a potential economic slowdown.
