The Fed accelerates Taper, but technology stocks unexpectedly strengthen

Generally speaking, the Fed's hawkish style will affect investors' expectations of future interest rates. Once interest rate hike expectations heat up, the first to be sold is technology stocks that rely on future long-term cash flow.

However, the Fed’s announcement after the FOMC meeting to accelerate the reduction of debt purchases has actually become a major driving force for the US technology stocks to rise overnight.

The technology-heavy Nasdaq 100 index closed up 2.35%, outperforming the broader market and becoming the best-performing index.

Leading technology stocks closed up collectively, and Tesla closed up 1.8%. Among the six FAANMG technology stocks, Apple closed up more than 2.8%, led the gains, Amazon and Facebook's Meta both rose more than 2%, Microsoft rose nearly 2%, and Google parent company Alphabet and Netflix rose more than 1%.

The key reason why technology stocks are unexpectedly strong is that "all the advantages are good" is the key reason.

Some professional commentators stated that the Fed’s move to speed up the Taper and hint at the timing of future interest rate hikes eliminated a large uncertainty that hovered over the market at the end of the year, giving investors optimistic expectations that the Fed could ensure economic growth while still maintaining economic growth. Suppress inflation.