Tech Stocks Plunge Amid Apple Price Hike and Fed Rate Concerns

Tech stocks plummeted on Friday, dragging down US stock index futures and cryptocurrency valuations. The Nasdaq 100 futures declined by 1% during pre-market trading, while S&P 500 futures shed 0.3%. This marks the fourth consecutive session of losses for these markets.

The decline in tech stocks can be attributed to Apple's decision to increase prices on MacBooks and iPads. The announcement sparked concerns about escalating component expenses, which could dampen consumer appetite for electronics. Market participants fear that this trend may undermine the semiconductor rally that has sustained the artificial intelligence investment thesis.

The Federal Reserve also remained a focal point for investors, as an unexpectedly strong May reading for the Personal Consumption Expenditures gauge maintained the prospect of additional interest rate increases. This amplified downward pressure on technology stock valuations.

Cryptocurrency markets tracked equities lower, with Ether declining 5.6% during the 24-hour period to approximately $1,555. Bitcoin briefly approached $58,000 before stabilizing near $59,888, registering a 2.7% daily loss and 4.5% weekly decline.