By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. September 19, 2024. Article no 1234.

U.S. stock markets experienced a strong rally today, particularly in the technology sector, following the Federal Reserve’s recent interest rate cut. The Nasdaq Composite surged by over 2%, reflecting investor optimism about the economic outlook.

U.S. stock indexes were sharply higher midday, led by the Nasdaq Composite, as tech stocks and other speculative assets such as bitcoin rose. The Dow Jones Industrial Average and S&P 500 traded up into record territory. International stocks also gained.

Nasdaq Composite Performance

The Nasdaq Composite (^IXIC) gained more than 2.8%, leading the charge among major indices. This surge is largely attributed to the tech-heavy nature of the index, which includes significant players like Apple, Microsoft, and Tesla, all of which saw their stock prices rise by approximately 2% to 3% in early trading.

Broader Market Gains

Alongside the Nasdaq, the S&P 500 (^GSPC) climbed nearly 2%, while the Dow Jones Industrial Average (^DJI) rose by about 1.5%, adding over 500 points to its value. These movements indicate a widespread positive reaction across different sectors of the market.

Investor Sentiment

The Fed’s decision to cut rates by half a percentage point has been interpreted as a signal that policymakers are committed to supporting economic growth. Chair Jerome Powell emphasized that this move is intended to mitigate recession risks, boosting confidence among investors.

Future Expectations

Analysts are adjusting their forecasts, with some predicting further rate cuts by the end of the year. Bank of America has revised its expectations, now anticipating a total reduction of 0.75% by year-end, which could further stimulate market activity and investor sentiment.

Read also : Gold : Build Your Wealth and Freedom

This rally in tech stocks reflects a broader trend of recovery and optimism in the stock market as investors react to monetary policy changes aimed at fostering economic stability.

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© Copyright 2024 – Eurasia Business News. Article no. 1234