US Stocks Plummet as Rate Hike Fears Hit Memory Stocks

The US stock market closed lower on the day, ending its five-day winning streak. The Dow Jones Industrial Average fell by 0.85% to 53,885.10 points. This decline was largely driven by memory stocks, which have been impacted by a rate hike consideration by Fed Chairman Warsh and the upcoming non-farm payrolls report.

SanDisk and Western Digital both saw significant declines post-earnings, with SanDisk down 6.81% to $1,258.58 and Western Digital falling 13.03% to $451.52. Despite delivering strong quarterly results, Goldman Sachs expects these stocks to come under downward pressure due to excessive market expectations.

On the other hand, some mega-cap tech stocks performed well, with SpaceX rising 6.14%, Microsoft up 2.54%, and Apple increasing by 0.45%. However, Nvidia fell 0.20% and Tesla dropped 0.63%.