Investment bank Wedbush stated in an investor report that if the Federal Reserve cuts interest rates this week, a series of technology stocks may benefit, especially the hottest companies in the field of artificial intelligence, such as Nvidia.
According to the financial news app, Wedbush, an investment bank, stated in an investor report that if the Federal Reserve cuts interest rates this week, a series of technology stocks, especially the hottest companies in the field of artificial intelligence, such as microsoft, may benefit. $NVIDIA (NVDA.US)$.
Wedbush analyst Daniel Ives said, 'In short, we believe that with the Federal Reserve and Powell starting the interest rate cut cycle this week, a soft landing on a macro scale is still possible. Tech companies' spending on artificial intelligence is still in the early stages of the cycle. We believe that tech stocks are ready to rise at the end of the year and in 2025.'
Daniel Ives pointed out that in addition to nvidia, other technology companies related to artificial intelligence will also benefit from this interest rate cut, including apple. $Microsoft (MSFT.US)$and$Oracle (ORCL.US)$,$Palantir (PLTR.US)$,$Salesforce (CRM.US)$,$Dell Technologies (DELL.US)$and$IBM Corp (IBM.US)$and$Apple (AAPL.US)$Please use your Futubull account to access the feature.$Advanced Micro Devices (AMD.US)$And$ServiceNow (NOW.US)$.
Daniel Ives stated that the capital expenditure on artificial intelligence is expected to reach 1 trillion US dollars in the coming years. He added, 'As more and more technology suppliers demonstrate the monetization aspect of artificial intelligence, this will ultimately drive the next phase of the bull market in technology stocks in a very stable overall IT spending environment. We believe this is the bullish background for tech stocks.'
The Federal Reserve will announce its September interest rate decision this Thursday morning Beijing time. It is widely expected that it will start a rate-cutting cycle, but there are still divergences on whether it will cut rates by 25 basis points or 50 basis points. Currently, the market expects a 67% probability of a 50 basis point rate cut by the Federal Reserve this week, higher than the 50% or so on last Friday.
Although most traders expect the Federal Reserve to cut interest rates by 50 basis points, UBS analyst Paul Donovan believes that a cut exceeding 25 basis points does not seem likely. He said, 'Although the Federal Reserve is cutting rates later, a larger rate cut may be seen as a signal of panic.' 'More frequent rate cuts seem more likely than larger rate cuts.'
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