From Investing.com: 2024-07-26 02:36:00

The Fed’s sentiment quickly shifted from unlikely cuts to possible cuts in the blink of an eye, causing Big Tech stocks to take a hit. Investors are now turning towards treasuries and government bonds in anticipation of central banks cutting rates, fueling a rotation from tech to non-tech sectors in the equity markets. The US economy saw an impressive growth rate of 2.8% last quarter, driven by a 2.3% increase in consumer spending. Despite rising credit card debt, inflation eased slightly to 2.9%, but strong growth numbers have many experts believing that a rate cut would be a mistake.

Amidst positive US economic data, European companies are facing challenges as weak earnings reports lead to a selloff in luxury stocks like Kering, LVMH, and Hermes. The European Central Bank may consider rate cuts in September due to disappointing economic indicators and lackluster earnings reports. With uncertain movements in the euro and the yen, markets are closely watching potential rate changes by the ECB and the Bank of Japan in the coming weeks.



Read more at Investing.com: Tech Stocks Tumble Amid Fed Rate Cut Speculation