Stock Surge on Wall Street: Notable Increases by Nvidia, Broadcom, and Other Companies
The Nasdaq Composite has reached a new record high, with tech stocks leading the charge at the start of the week on Wall Street. The rally is likely to continue given the impending interest rate cuts, as markets expect the Fed to cut interest rates by 25 basis points this week and anticipate a total of 67 basis points of easing by the end of 2019.
This price increase is due to new interest rate hopes among investors, who are drawn to tech stocks given their sensitivity to interest rates and their potential benefits in a weakening economy. Tech stocks, such as Amazon and Nvidia, are particularly interest rate-sensitive and have been the focus of this recent rally.
However, it is important to note that there is a potential conflict of interest regarding the reporting on Amazon and Nvidia stocks. The Börsenmedien AG, the publication's parent company, holds shares of both Amazon and Nvidia, and the CEO and majority shareholder, Bernd Förtsch, also has positions in Nvidia. The author of the publication also holds positions in both Amazon and Nvidia.
While these disclosures do not necessarily indicate that the author or Börsenmedien AG have a negative or positive view of Amazon or Nvidia stocks, readers should be aware of this potential bias when considering the information presented about these stocks. It is recommended that readers seek multiple sources of information before making investment decisions.
Despite this potential bias, investors can still buy in - both in individual tech stocks and in tech indices. For instance, Broadcom, Marvell, and Palantir are all up around three percent, following the trend set by Amazon and Nvidia.
It is worth noting that the Fed could react to the currently weakening economy and meet the demands of US President Donald Trump for lower interest rates. The downward step in interest rates is now fully priced in for the rate cut scheduled for September 17.
Readers should carefully consider their own investment objectives, risk tolerance, and financial situation before making investment decisions. This article serves to inform, but readers are advised to conduct their own research and consult with a financial advisor before making any investment decisions.
