The Nasdaq 100 Index posted its best weekly performance since October 2023, climbing 5.9% to close with a positive result for the fifth consecutive trading day.
The rise came on the heels of a shocking 5.8% plunge last week, marking the index’s worst week in nearly two years.
Tech stocks rose 5.9% this week, erasing losses from last week.
What sparked the surge? Investors were encouraged by a string of strong economic data showing subdued inflation, stable jobless claims and buoyant consumer sentiment.
The data bolstered market expectations that the Federal Reserve will announce its first interest rate cut in more than four years when it meets next week.
According to the CME FedWatch tool, the market is currently pricing in even odds of a 25 basis point cut versus a more aggressive 50 basis point cut, with support for the latter growing in recent hours.
A recent analysis from Goldman Sachs showed how the stock market has historically performed after the first rate cut.
If the U.S. economy avoids a recession after a rate cut, stock market performance tends to be positive over the next three to six months. However, if a recession occurs, stocks typically fall after a rate cut.
The 7 Best-Performing Tech Stocks This Week
Several tech stocks have posted impressive gains over the past five days, helping lift the overall Nasdaq 100 Index. Below are the best-performing stocks.
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