Tech Stocks On Track For Best Session In 5 Months Ahead Of Fed Meeting; Small Caps Target Highest Close Since January 2022: What's Driving Markets Wednesday?
Portfolio Pulse from Piero Cingari
Tech stocks experienced their best session in five months ahead of the Federal Open Market Committee (FOMC) meeting, driven by strong earnings and easing concerns over chip export restrictions to China. The Nasdaq 100 surged 2.7%, led by Nvidia Corp. (NVDA), which jumped 11%. The iShares Semiconductor ETF (SOXX) soared over 5%. The S&P 500 rose 1.6%, and small caps tracked by the iShares Russell 2000 ETF (IWM) increased by 1.1%. The dollar eased 0.2%, while the Japanese yen, tracked by the Invesco CurrencyShares Japanese Yen Trust (FXE), rallied 1.4%. Commodities like gold and oil also saw significant gains.
July 31, 2024 | 5:23 pm
News sentiment analysis
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NEGATIVE IMPACT
The Invesco QQQ Trust Series (QQQ) fell 2.6%, despite the tech rally, indicating some profit-taking or rebalancing.
The ETF's decline suggests profit-taking or rebalancing, despite the overall positive sentiment in the tech sector.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXE) rallied 1.4% following an overnight rate hike by the Bank of Japan.
The ETF's rally is driven by the Bank of Japan's rate hike, which strengthened the Japanese yen.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) rose 1.1%, eyeing its highest close since January 2022, as small caps posted solid gains.
The ETF's rise is attributed to the overall positive sentiment in the market and solid gains in small-cap stocks.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Nvidia Corp. (NVDA) led the tech rally with an 11% jump, driven by strong earnings and easing concerns over chip export restrictions to China.
Nvidia's significant price increase is attributed to strong earnings and positive sentiment around easing chip export restrictions, making it a key driver in the tech rally.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The iShares Semiconductor ETF (SOXX) soared over 5%, marking its strongest session since late February 2024, driven by a rebound in chipmakers.
The ETF's strong performance is due to a broad rebound in chipmakers, supported by robust earnings and easing regulatory concerns.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) was 1.6% higher, reflecting the overall positive market sentiment.
The ETF's rise is in line with the overall market gains, driven by strong earnings and positive sentiment ahead of the FOMC meeting.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60