The Fed Rate Cut Is Lifting Stocks. Tech Looks Like the Big Winner.
The Federal Reserve’s decision to cut interest rates by half a percentage point has sparked a broad rally in stock prices, but it looks like one sector is set to outperform the rest.
Futures for the tech-heavy Nasdaq 100 surged 2.1%. If those gains hold until the opening bell, the index would be trading just shy of 20,000 points, having last hit that level in mid-July.
Roundhill’s Magnificent Seven exchange-traded fund, which tracks shares in the seven blue-chip megacaps that accounted for the bulk of the benchmark S&P 500’s gains last year, was up 2.3% ahead of the opening bell.
Chip designer Nvidia and electric car maker Tesla were the two biggest winners from the group, with each jumping more than 3% in premarket trading.