Dell, HP shares hit by growth worry as Fed tightening looms

Dell, HP shares hit by growth worry as Fed tightening looms

Bloomberg: These are tough times for hardware stocks.

Investors are souring on Dell Technologies, HP Inc., and Hewlett Packard Enterprise Co. on concern that surging inflation will curb consumer spending. At the same time, the Federal Reserve’s effort to damp those price increases is likely to crimp the economy in coming months, further denting sales.

In that environment, investors are turning their backs on computer makers despite their having some of the cheapest valuations in the tech sector. Instead, they’re looking to companies that are less dependent on the economic cycle to boost their sales, such as Apple Inc. and Amazon.com Inc.