Reported 3 months ago
On July 17, 2024, the S&P 500 Index and Nasdaq Composite Index experienced a shift away from high-flying tech stocks towards more interest rate-sensitive stocks, with Nasdaq plummeting 2.77% to 17,996.92 points, marking its worst daily performance of the year. Nvidia and TSMC ADR both suffered heavy losses of 6.64% and 7.98% respectively. The ongoing pullback of large-cap tech stocks added pressure on the indices, with semiconductors particularly facing challenges amidst potential stricter trade restrictions by the Biden administration. Traders are increasingly optimistic about rate cuts benefiting small-cap and higher financing cost companies, with expectations that the Federal Reserve may cut rates in September. Amid stubborn inflation, investors are advised by UBS to 'use cash immediately' before the Fed starts its rate cuts later this year.
Source: YAHOO