Shares of semiconductor company Marvell Technology, Inc. (NASDAQ:MRVL) are trading lower following a Nikkei Asia report suggesting Samsung is halting new procurement orders and has asked suppliers to reduce component shipments. The sector is also down amid overall market weakness after the Federal Reserve on Wednesday raised its target fed funds rate by 75 basis points to a new range of between 1.5% and 1.75%, its largest interest rate hike in 28 years.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the Fed said in a statement… Read More
Following the Fed decision, the 10-year US Treasury yield has spiked, which has continued to pressure valuations in 2022. The 10-year Treasury yield hovered around a 5-year high of 3.495% Thursday morning before dipping to around the 3.398% level.
When key interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lowers the value of the stock.
According to data from Benzinga Pro, Marvell Technology, Inc. has a 52-week high of $93.85 and a 52-week low of $44.91.
Marvell Technology shares are trading lower by 7.8% at $45.35 per share at the time of publication.
