Big Tech stocks saw a significant jump on Thursday, helping U.S. indexes recover from the previous day’s losses. The S&P 500 rose by 0.7%, the Nasdaq composite reached a record high with a 1.7% increase, and the Dow Jones Industrial Average saw a slight dip. Apple and Nvidia were major contributors to the market’s upward movement, with Amazon also setting a new record after a 1.7% increase.
The market’s focus has once again shifted towards Big Tech stocks, reminiscent of last year when these companies drove market gains. Concerns about high inflation have led to uncertainty regarding potential interest rate cuts by the Federal Reserve. Despite some positive inflation data, fears remain about the impact of stubbornly high inflation on the economy and investment prices.
Bond market activity continues to influence Wall Street, with Treasury yields holding steady after mixed inflation and economic data releases. The Federal Reserve’s approach to interest rates remains a key point of speculation for traders, with expectations for rate cuts in 2024 having drastically reduced. Investors are closely monitoring economic indicators, with hopes that either falling interest rates or improved corporate profits can help stabilize stock prices.