Tech Sector Depends on Fed's Rate Cuts for Broader Rally

Reported about 1 year ago

A broad equity rally is not extending to the tech sector, which sees gains mainly in a few AI winners considered defensive in uncertain times. An equal-weight Nasdaq 100 is underperforming its cap-weighted counterpart, signaling the need for Fed rate cuts to drive broader tech performance. The top tech stocks, including chipmakers like Nvidia, attract investors for safety. Concerns over high valuations and potential bubble bursts remain, as a few dominant names could significantly impact the markets. Despite risks, investors continue to gravitate towards leading tech stocks for performance.

Source: YAHOO

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