Yesterday, following the Federal Reserve's announcement to control inflation, the market was greatly encouraged. The three major indices staged a remarkable comeback, surging ahead and closing collectively higher in an impressive finish. However, that positive sentiment doesn't seem to have carried over to today, especially for high-growth tech stocks, which have collectively surrendered. $Tesla (TSLA.US)$and $Apple (AAPL.US)$During trading, they fell more than 5% and 4%, respectively, $Microsoft (MSFT.US)$Nearing a 3% drop, with weaker-than-expected earnings guidance for fiscal year 2022, $Adobe (ADBE.US)$dropped more than 10%.
On the other hand, chip stocks fared even worse, with Xilinx (XLNX) and Skyworks Solutions (SWKS) falling more than 8%, $NVIDIA (NVDA.US)$Down more than 7%, $Advanced Micro Devices (AMD.US)$Fell more than 6%, $Broadcom (AVGO.US)$and NXP Semiconductors (NXPI) dropping more than 3%. Upon investigating the reasons, it appears that Apple, aiming to further reduce its dependence on chip suppliers, is ramping up recruitment at a new office to develop in-house wireless chips, which may eventually replace products supplied by two major chipmakers, AVGO and SWKS. The office is located in Irvine, California, where NXPI’s wireless chip design office is also based. It's conceivable that Apple might poach NXPI, attracting its engineers to switch sides...