S&P 500 hits new high on tech rally, driven by positive earnings estimates

From Nasdaq: 2024-09-25 14:00:00

The S&P 500 has hit a new high, reaching 5,732.93 points and jumping 0.3%. Tech stocks like Amphenol, ANSYS, Arista Networks, Fortinet, and IBM are driving the rally after the Federal Reserve’s rate cut announcement. Tech stocks have seen positive earnings estimates, making them ideal investments in the current market.

The Federal Reserve recently announced a 50-basis point rate cut instead of the expected 25 points to boost the economy. The stock market has been on an upward trend, with the S&P 500, Dow, and Nasdaq reaching new heights. The S&P 500 has gained 20.2% year to date, driven by tech stocks like NVIDIA.

The tech stock rally is fueled by excitement around artificial intelligence (AI) and generative AI, with NVIDIA leading the charge. AI is seen as holding untapped potential, motivating tech companies to explore its benefits. NVIDIA’s success has spurred growth in the semiconductor industry, with smart devices driving the need for powerful computing and learning capabilities.

Tech companies like Amphenol, ANSYS, Arista Networks, Fortinet, and IBM show strong growth potential. Amphenol designs electrical connectors, while ANSYS creates engineering simulation software. Arista Networks offers cloud networking solutions, Fortinet provides network security, and IBM focuses on cloud and data platforms. These stocks have positive earnings estimates and a Zacks Rank of 1 or 2.

Investors can benefit from the recent tech stock rally, driven by the Federal Reserve’s rate cut and the growing excitement around artificial intelligence. Stocks like Amphenol, ANSYS, Arista Networks, Fortinet, and IBM show strong growth potential, making them attractive investments in the current market climate.



Read more at Nasdaq: S&P 500 Hits New All-Time High on Tech Rally: 5 Stocks Set to Gain