Stock market hits record highs after Fed rate cut, some stocks soar, others sold in overbought market

From CNBC: 2024-10-16 06:36:21

The U.S. stock market hit record highs following the Federal Reserve’s first interest rate cut in over four years on Sept. 18. Stocks like Meta Platforms, Alphabet, and Danaher soared, prompting investors to sell shares in an overbought market. The positive macro environment also boosted Wells Fargo, Morgan Stanley, Salesforce, Eaton, and Procter & Gamble stocks. Wells Fargo saw the biggest gain at 22%, followed by Morgan Stanley at 16.2%, Salesforce at 13.8%, Meta Platforms at 11.5%, and Eaton at 11.3%. Analysts remain optimistic about these stocks, with Salesforce receiving upgrades and Meta Platforms receiving higher price targets.

As the U.S. stock market continued to reach all-time highs, the CNBC Investing Club with Jim Cramer took advantage of the strong performance of various stocks. The Club sold shares of Meta Platforms, Alphabet, Danaher, and Procter & Gamble in an overbought market, while holding onto rate-sensitive stocks like Wells Fargo and Morgan Stanley. Investments in artificial intelligence boosted Salesforce, while strong business fundamentals and positive Wall Street recommendations elevated Eaton and Meta Platforms. The Club remains optimistic about the performance of these stocks in the current market environment.



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