Tech stocks surge on positive inflation report, leading to gains in major indexes.

From Nasdaq: 2024-09-13 09:24:00

U.S. stocks closed higher Thursday after the latest inflation report, boosting expectations of a 25-basis point rate cut by the Federal Reserve. The Dow Jones Industrial Average rose 0.6%, S&P 500 gained 0.8%, and Nasdaq surged 1%. Tech stocks like Microsoft and NVIDIA led the rally as investors anticipate Fed’s upcoming FOMC meeting. The fear-gauge VIX index declined by 3.50% to 17.07.

Shares of tech giants saw gains on Thursday ahead of the Fed meeting next week. Alphabet Inc. and Microsoft Corporation shares rose, with Microsoft holding a Zacks Rank #3. The producer price index (PPI) showed a 0.2% rise in August, in line with expectations. Core PPI rose 0.3%, surpassing estimates, with overall PPI up 1.7% and core PPI up 3.3% year-over-year in August. Investors anticipate a 25-basis point rate cut by the Fed next week.

Latest economic data showed jobless claims at 230,000 for the week ending Aug 7, with continuing claims at 1,850,000. The four-week moving average for jobless claims and continuing claims reported slight changes. Traders view a 69% probability of a 25-basis point rate cut by the Fed in its upcoming meeting. This comes after disappointing economic data last week reduced hopes for a 50-basis point cut.

Zacks has identified a top semiconductor stock set to outperform, citing its strong earnings growth and expanding customer base. With projections of massive growth in the semiconductor market, the stock is positioned for success in key technology segments like AI, ML, and IoT. Semiconductor manufacturing is expected to grow from $452 billion in 2021 to $803 billion by 2028.



Read more at Nasdaq: Stock Market News for Sep 13, 2024