What's Going On With Arm Holdings Shares?

Arm Holdings PLC - ADR ARM shares are trading lower by 2.94% to $50.32 during Friday's session. Semiconductor stocks are declining due to concerns about inflation and possible interest rate hikes. Additionally, reports of potential U.S. restrictions on Chinese access to American AI chips are further pressuring these stocks.

Inflation and the anticipation of interest rate hikes can have a significant impact on stock prices across various industries. Higher interest rates can increase borrowing costs for companies, reducing their profitability. This can be particularly detrimental for capital-intensive industries like semiconductors, where companies require substantial investments in research, development and manufacturing facilities.

Rising interest rates can also make government bonds and other low-risk investments more attractive compared to stocks, leading investors to shift their money away from the stock market, which can result in declining stock prices.

See Also: U.S. Consumer Sentiment Tumbles In October

According to data from Benzinga Pro, ARM has a 52-week high of $69.00 and a 52-week low of $49.85.