The Stock Market Reacts to Federal Reserve's Interest Rate Cut and AI Stocks Boom
Thursday, 19 September 2024, 10:04
The Impact of the Federal Reserve's Decision on AI Stocks
The stock market's artificial intelligence trade boomed on Thursday, a day after the Federal Reserve issued a jumbo interest rate cut of 50 basis points. The tech-heavy Nasdaq 100 soared nearly 3% on Thursday, while the underlying AI trade saw even bigger gains.
Key Players in the AI Sector
- Nvidia
- Broadcom
- ASML
These companies, seen as integral to the infrastructure supporting AI, surged about 5%. Investors in the stock market's AI trade can thank Fed chairman Jerome Powell for Thursday's risk-on surge in tech, according to analyst Dan Ives.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.