Why Nvidia Shares Are Getting Hammered

NVIDIA Corporation NVDA shares are trading lower by 4.62% to $168.58 Thursday morning after HSBC initiated coverage on the stock with a Reduce rating and $136 price target.

Nvidia shares are also trading lower amid overall market weakness following Wednesday's Fed decision to raise interest rates by 50 basis points.

What Happened?

The Federal Reserve raised its target range for the federal funds rate by 0.5%, bringing the new target up to a range of 4.25% to 4.5%.

The Fed will continue to reduce its holdings of Treasury securities, agency debt and agency mortgage-backed securities on a monthly basis. The committee anticipates that ongoing increases in the target range will be appropriate to return inflation to its 2% goal over time...Read More

According to data from Benzinga Pro, NVDA has a 52-week high of $313.30 and a 52-week low of $108.13.