Tech Stocks Propel Wall Street Ahead of Crucial Central Bank Decisions Week
Tech giants’ stocks have led to a rise in Wall Street indices on the eve of an important week filled with announcements from central banks.
Topic
Interest Rate Future
Markets are gearing up to receive more guidance regarding the Federal Reserve’s plans on interest rates.
At the beginning of the trading week, major technology companies helped push Wall Street indices higher,
ahead of a series of anticipated decisions from central banks across the United States, Britain, and Japan.
After a recent decline, stock prices have improved, with market leaders outperforming.
Shares of Alphabet Inc soared following reports from Bloomberg News that
Apple is discussing the incorporation of Google’s AI engine, Gemini, into iPhone devices.
Nvidia CEO Jensen Huang introduced new chips aimed at expanding the company’s dominance in the artificial intelligence sector.
Anthony Saglimbeni from Ameriprise stressed the importance of not overlooking the areas that drive most of the companies’ profits,
noting the stark difference in profit growth between major tech companies and other companies that led the tech sector at the turn of the century.
Wall Street Gains
Wall Street is also preparing for more indications about the Federal Reserve’s interest rate plans,
in a week witnessing a significant number of central bank decisions that affect nearly half of the global economy.
This week is set to be the most active in 2024 so far, with decisions impacting the borrowing costs for six of the world’s most traded currencies.
The three-day decline of the S&P 500 index ended, and the Nasdaq 100 rose by 1%, while the index of the “Magnificent Seven” tech companies doubled.
The two-year U.S. bond yields remained close to their highest levels in 2024, amid ongoing erosion of expectations for a Federal Reserve rate cut.
Some changes and surprises are expected in the central banks’ meetings, potentially leading to future market volatilities.
Before the Federal Reserve’s decision, Japan is preparing for a historic moment by ending its negative interest rate policy,
the last country globally to implement this policy, leading to an increase in bets on the yen in futures contracts to the highest level since 2007.
Investors and analysts closely monitor the movements of the Federal Reserve and other central banks,
anticipating their impact on the stock and bond markets and preparing for potential volatilities based on these decisions
and expectations related to inflation and interest rates.
Tech Stocks Propel Wall Street Ahead of Crucial Central Bank Decisions Week