Tech Stocks Surge Amid Fed Policy Speculation
Investors turned to tech stocks as a safe bet amid economic uncertainty due to the U.S. government shutdown. The Federal Reserve's minutes hinted at potential interest rate cuts, bolstering tech-heavy indexes, although a divided committee on inflation left some ambiguity. AI and chip stocks notably outperformed.
Technology stocks propelled Wall Street forward on Wednesday, buoyed by investor anticipation ahead of the Federal Reserve's policy meeting minutes release. With economic data scarce due to the ongoing government shutdown, market participants turned their focus to tech shares, particularly those related to artificial intelligence.
The Nasdaq, leading the major indexes, was boosted by AI megacaps. Meanwhile, sectors like energy and consumer staples underperformed, despite a dip in mortgage demand reported by the Mortgage Bankers Association.
Federal Reserve minutes indicated a cautious approach to potential interest rate cuts, with policymakers expressing concern over labor market risks and inflation. Financial markets largely anticipate a rate cut at the upcoming October policy meeting, while looming geopolitical factors have driven gold prices above $4,000 per ounce as a safe haven for investors.
(With inputs from agencies.)
ALSO READ
The Ripple Effect of the U.S. Government Shutdown: Who's Still Working and Who's Not
IRS Faces Major Staff Furlough Amid Government Shutdown
IRS Furloughs 34,000 Employees Amid Government Shutdown
IRS Furloughs 34,000 Employees Amid Government Shutdown
Air Traffic Turmoil: FAA Staff Shortages Cause Aviation Chaos Amid Government Shutdown
Google News