Stock rally spreads as tech bounce gains momentum
Published On Sep 12, 2024, 4:34 AM
U.S. stock markets soared this week, adding over $1.3 trillion in value to the S&P 500, spurred by anticipation of potential Federal Reserve interest rate cuts. Most major sectors performed well, particularly small-cap stocks, while banks faced some negative news. Economic indicators, including a slight rise in producer prices and increased jobless claims, suggest the Fed may lean towards a more dovish stance, possibly starting with a 25 or even a 50 basis point rate cut. Key highlights included strong performances from Nvidia and Alaska Air, but challenges for Wells Fargo and Adobe.
Stock Forecasts
IWM
Positive
The expectation of a rate cut from the Federal Reserve is likely to boost overall market sentiment, as it often signals a more favorable environment for equities. Small cap stocks in particular could benefit the most from policy easing.
NVDA
Positive
Nvidia's recent gains in the chip sector highlight its strength, particularly leading up to a favorable monetary environment. However, concerns linger due to Adobe's disappointing outlook, which could impact broader tech sentiment.
XLP
Positive
Given the positive retail performance and Kroger's raised guidance, consumer defensive stocks may see upward momentum as investors seek stability during potential economic fluctuations.
ADBE
Negative
On the downside, Adobe's disappointing outlook could indicate challenges in the tech segment, potentially leading to cautious sentiment among investors in that space.
Related News
Laffer Tengler CEO and CIO Nancy Tengler discusses investment opportunities and more on ‘Making Money.'
Here’s the deflation breakdown for September 2024 — in one chart
Oct 11, 2024, 1:58 PM
Prices in segments of the U.S. economy, like some imported goods, consumer electronics and gasoline, have deflated since September 2023.
Stock market today: Dow, S&P 500 slip as inflation, jobs data cloud Fed rate-cut picture
Oct 10, 2024, 4:06 PM
Investors are looking to the latest reading on CPI consumer inflation to set expectations for the path of interest rates.