Nvidia Sinks as Fed Hawks Spark Rate Hike Fears

Nvidia's shares took a hit on Friday, closing at $217.55 after reaching an intraday high of $229.26, following a nearly 9% gain on Thursday.

According to CNBC columnist Jim Cramer, the sell-off was linked to hawkish signals from the US Federal Reserve regarding a possible increase in interest rates.

Cramer stressed that the decline was not related to weak fundamentals, as Nvidia reported strong quarterly results. He noted that Friday's decline erased more than half of Thursday's gain.

The Fed's benchmark rate affects borrowing costs in the US economy, and an increase may impact rates on other types of debt.