Nasdaq 100 Posts Biggest Weekly Rally In Almost A Year As Fed Rate Cut Hopes Grow: Top 7 Tech Stocks Of The Week – Advanced Micro Devices (NASDAQ:AMD), ARM Holdings (NASDAQ:ARM)

Dynamic Recovery Following a Turbulent Week

The Nasdaq 100 Index has orchestrated a remarkable rebound, boasting the most compelling weekly performance since October 2023 with a substantial 5.9% surge. This robust rally starkly contrasts the preceding week’s jolting 5.8% plummet, marking it as the index’s grimmest performance in almost two years.

Rising Tech Stocks Causing Waves

The technology sector has been a major driver of this resurgence, propelling tech stocks up by 5.9% over the week, effectively erasing the losses from the previous week. The market atmosphere has been electrified by a string of encouraging economic indicators, illustrating modest inflation, consistent jobless claims, and an optimistic consumer sentiment report.

This positive data landscape has solidified the market’s belief in an impending interest rate cut by the Federal Reserve, the first of its kind in over four years, expected during the upcoming meeting. Market sentiments are divided between a 25-basis-point cut and a more aggressive 50-basis-point cut, with the latter gaining momentum recently, as per the CME FedWatch tool.

An analysis by Goldman Sachs has shed light on the post-rate cut stock market dynamics. Historical data suggests that if the U.S. economy steers clear of a recession post-rate cut, stock performance tends to be buoyant over the subsequent three to six months. In contrast, during a recession, stocks usually witness a subdued performance post-rate cut.

Leading Tech Stocks Steering the Charge

Several technology stocks have showcased impressive growth over the past trading week, actively contributing to the Nasdaq 100 rally. Notable among these top-performing stocks are:

Let’s continue to observe the dynamic market movements as investors navigate through these exciting times.