The Nasdaq Composite (NASDAQINDEX: ^IXIC) has been in a bear market for much of 2022, and many see the Federal Reserve as the primary culprit. With its aggressive series of interest rate increases, the prospects for capital-hungry growth stocks have gotten a lot less certain over the course of the year. And with the Fed expected to raise short-term interest rates yet again Wednesday afternoon, the Nasdaq wasn't able to mount much of a recovery from Tuesday's declines.
A downbeat financial report from travel disruptor Airbnb (NASDAQ: ABNB) weighed on investor sentiment, given the hope that a recovery in travel activity would prove to be a lasting supportive trend. However, an even bigger drop in the share price of ZoomInfo Technologies (NASDAQ: ZI) showed how vulnerable software-oriented companies still are even after sizable past declines.
Shares of Airbnb were down about 5% in premarket trading Wednesday morning. The alternative accommodation platform provider saw amazing results in its summer quarter, but it projected that the future could see weaker conditions as macroeconomic pressures mount.
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Airbnb Falls, but This Nasdaq Stock's Getting Hit Even Harder