Tech stocks surged on Fed rate cut hint, chip stocks rallied on semiconductor export limit

From Nasdaq: 2024-08-01 09:33:00

Wall Street closed higher on Wednesday, led by tech stocks. The Dow Jones rose by 0.2%, Nasdaq gained 2.6%, and S&P 500 increased by 1.6%. Fed hinted at a September rate cut, causing yields on 10-year Treasury note to slide. Chip stocks surged on U.S. plans to limit semiconductor exports to China. NVDA and AVGO rose by 12% each.

The Fed signaled a possible rate cut in September, citing strong growth and inflation in line with expectations. Powell’s comments boosted tech stocks and bond market activity. Economic data showed a decrease in U.S. oil inventories and a rise in pending home sales for June. Major indexes closed in the green following Powell’s dovish remarks.

Tech stocks saw significant gains on Wall Street, with NVDA and AVGO surging 12% each. Fed Chair Jerome Powell hinted at a potential rate cut in September, boosting investor confidence. Economic data showed positive trends in crude oil inventories and pending home sales for June. The market reacted positively to Powell’s comments, driving stocks higher.



Read more at Nasdaq: Stock Market News for Aug 1, 2024