Advanced Micro Devices, Inc. (AMD) shares are experiencing a decline today, primarily influenced by broader market reactions to the Federal Reserve's recent monetary policy decision. On December 18, 2024, the Federal Reserve announced a quarter-point interest rate cut, adjusting the federal-funds rate to a range between 4.25% and 4.5%. This move, while anticipated, has led to a general downturn in the stock market as investors reassess the economic outlook and potential impacts on growth sectors, including technology.
Additionally, the U.S. government's announcement of a trade investigation into China's semiconductor production is adding pressure to AMD's stock. The investigation, focusing on China's production of older-model semiconductors, raises concerns about potential tariffs or import bans that could disrupt supply chains and affect AMD's operations. The investigation aims to address national security concerns and reduce dependency on Chinese semiconductor supply chains, which could have significant implications for the industry.
AMD's stock is currently trading at $120.56, down 3.57% from its previous close of $125.02, and has decreased by 3.79% from its opening price of $125.31.