Why Credo Technology Stock Is Surging 8% on an Unemployment Jump

Wall Street has developed an unusual relationship with economic data lately: bad news can sometimes be precisely what stocks need. With inflation remaining stubbornly elevated and the Federal Reserve having raised interest rates for the first time in three years last month, investors have been increasingly worried about how much more monetary tightening the economy can withstand. Higher borrowing costs particularly weigh on technology stocks, where valuations often depend on earnings expected years into the future.

This morning's employment report, however, dramatically changed the interest rate outlook, giving semiconductor stocks like Credo Technology (CRDO) an unexpected catalyst to move higher.