Market Highs and Monetary Hopes: Tech Stocks Tumble Amid Fed Easing Speculations

The S&P 500 and Nasdaq composite indexes achieved new closing highs for the consecutive day amid investor hopes for an impending monetary easing cycle by the Federal Reserve. These gains reflect optimism that the impact of tariffs has not yet significantly affected consumer prices, encouraging investors' confidence in economic stability.

However, various tech stocks, part of the so-called Magnificent Seven, experienced downturns as investors searched for fresh growth catalysts. Contrary to the tech sector's slide, other industries, particularly healthcare, rose significantly, with valuations of the S&P 500 surpassing long-term averages.

Key developments include the Federal Reserve President's remarks on potential interest rate strategies and the Treasury Secretary's speculation on an aggressive rate cut. Companies like CoreWeave and Paramount Skydance reported substantial financial movements, indicating a mixed market sentiment amidst economic variables and innovation news.

(With inputs from agencies.)