The Nasdaq 100 Roars Back: A Spectacular Rebound Amid Federal Reserve Speculations
After a tumultuous week that saw the Nasdaq 100 Index plummet by 5.8%, the tech-heavy index roared back with a commanding 5.9% surge, marking its most significant weekly gain since October 2023. The five consecutive days of positive performance signaled a stark reversal from the previous week’s woes.
Bullish Sentiment Sparks Tech Surge
Investors were buoyed by positive economic indicators, including subdued inflation, steady jobless claims, and an optimistic consumer sentiment report. These factors reinforced market expectations of an imminent interest rate cut by the Federal Reserve, the first in over four years, expected to be announced at the upcoming meeting.
The CME FedWatch tool indicates a growing probability of a more aggressive 50-basis-point rate cut, alongside the common 25-basis-point expectation. Historical analysis by Goldman Sachs suggests that post-rate cut scenarios have varied outcomes, with stock market performance closely tied to ensuing economic conditions.
Tech Stars Shine Brightest
Over the past week, several tech stocks outperformed, underpinning the Nasdaq 100’s remarkable rally. Notable among the stars were:
| Name | Price Chg. % (5D) | Industry |
| ARM Holdings plc ARM | 26.00% | Semiconductors and Semiconductor Equipment |
| Broadcom Inc. AVGO | 22.53% | Semiconductors and Semiconductor Equipment |
| Super Micro Computer, Inc. SMCI | 18.39% | Technology Hardware, Storage and Peripherals |
| Warner Bros. Discovery, Inc. WBD | 17.24% | Entertainment |
| NVIDIA Corporation NVDA | 15.81% | Semiconductors and Semiconductor Equipment |
| Advanced Micro Devices, Inc. AMD | 13.60% | Semiconductors and Semiconductor Equipment |
| Constellation Energy Corporation CEG | 13.24% | Electric Utilities |
Read Next:
Photo: Shutterstock
