NZ tech stocks hit hard as US Fed signals rate hikes

The S&P/NZX 50 Index fell 167 points, or 1.2%, to 12983.01. Turnover was $118.8 million.

Investors in the US reacted strongly to the minutes from the Federal Reserve’s most recent meeting, which showed most members of the committee were thinking interest rates would need to go higher.

This is due to both persistent inflation, which it had previously considered transitory, as well as a tight labour market which could be considered a sign of maximum employment.

Non-farm payroll data, the most-watched employment measure, is set to be released on Friday night and will give a further indication on how soon the central bank may raise rates.