S&P 500 Falls 1.95% in Week as Tech Stocks and Rate Concerns Dominate

The S&P 500 closed Friday at 7,659.44, down 84.62 points (1.1%), and fell 1.95% for the week—its worst since June. The Nasdaq slid 4.48% on the week, while the PHLX Semiconductor Index (SOX) fell for an 8th consecutive day, matching its longest losing streak since 2006. Micron dropped 5.6% and Intel fell 5.8%.

Hotter-than-expected inflation readings (Core CPI at 2.6% and PPI at 6.3% on Thursday) have sparked fears of continued Fed rate hikes during the 27–28 October policy meeting. This pressure weighs most heavily on growth and technology stocks, which depend on cheaper financing. Broad selling across the Growth sector pushed the VIX to 19.99, its highest since July 29, signaling elevated market anxiety.

This week's selloff mirrors the 'Fed Tightening Anxiety' pattern seen in 2022 when rate hikes began. The contradiction between hot inflation data and a falling 10-year Treasury yield (from 5.244% to 5.098%) reflects market confusion about the path ahead. The critical signal will come from the Fed's 27–28 October meeting; hawkish guidance could extend losses, while signs of cooling inflation in upcoming data could provide relief. Micron and Intel's sharp declines highlight growing concern that the AI boom may not insulate chip stocks from rate sensitivity.