Stock Surge on Wall Street: Nvidia, Broadcom, and Others Experience Gains
Tech Stocks Soar as Fed Rate Cut Becomes Likely
Tech stocks are surging on Wall Street, with investors buoyed by the increasing likelihood of interest rate cuts from the Federal Reserve. The bullish sentiment towards tech stocks is evident in the performance of major indices, with the Nasdaq Composite reaching a new record high.
The price increase in tech stocks can be attributed to new hopes for interest rate cuts among investors. According to the FedWatch Tool, the interest rates are expected to be cut by 99% this year, and by 75 basis points in 78% of cases. The chance of a double rate cut of 50 basis points is now at 12%.
The Fed could react to the currently weakening economy, with a rate cut fully priced in for the upcoming Wednesday, September 17th. Market participants and major banks like Morgan Stanley and Deutsche Bank expect three total rate cuts in 2025, each by 25 basis points at the remaining meetings in September, October, and December.
The FedWatch Tool predicts a 95.2% probability of a 0.25% interest rate cut at the September 17, 2025 meeting and about a 79% probability for another cut at the October 29, 2025 meeting.
Nvidia, Amazon, and other tech stocks are in high demand, driving major indices up. These stocks are particularly sensitive to interest rates and benefit from the weak U.S. jobs report last Friday. The Infront Nasdaq 100 (WKN: A0AE1X) continues to show tech stocks as the benchmark on Wall Street.
In the real-time portfolio of Boerse Medien AG, shares of Amazon and Nvidia are held. The CEO and majority shareholder of the publisher Boerse Medien AG, Mr. Bernd Förtsch, has direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication.
Despite the rise in tech stocks, investors can still buy into tech stocks and tech indices. However, it is important to note that the author holds direct positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication: Amazon, Nvidia.
Tech stocks are in high demand at the start of the week on Wall Street, with Broadcom, Marvell, and Palantir gaining around three percent. Amazon and Nvidia lead the barely changed Dow Jones.
As the Federal Reserve continues to consider interest rate cuts, the bullish sentiment towards tech stocks is expected to persist, making them an attractive investment option for many investors.
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