Biggest Rate Cut Stock Winners: Apple, Nvidia Rally $250 Billion
Conventional wisdom favors growth-focused stocks when the Fed shifts to looser monetary policy, and Thursday was no exception, as the S&P’s information technology sector out shadowed its counterparts, gaining 3.1%, outpacing the index’s 1.8% bounce.
$Apple (AAPL.US)$ and $NVIDIA (NVDA.US)$ added the most market value of any public U.S. firms Thursday, as Apple stock’s 3.7% gain tacked on $124 billion to the iPhone maker’s market capitalization and Nvidia stock’s 4% rally added $122 billion to the artificial intelligence semiconductor architect’s valuation.
Surprising Fact![]()
The top-performing stock on the S&P was not a big tech stock or a stock particularly highly correlated to the rate environment. Rather it was Darden Restaurants, the parent company of several restaurant chains including Olive Garden and LongHorn Steakhouse, as its shares spiked 8.3%. The gain was most likely not due to Wall Street’s hopes of rate cuts igniting a major appetite for breadsticks, but rather a reaction to Darden’s partnership with Uber Eats announced Thursday morning.
The top-performing stock on the S&P was not a big tech stock or a stock particularly highly correlated to the rate environment. Rather it was Darden Restaurants, the parent company of several restaurant chains including Olive Garden and LongHorn Steakhouse, as its shares spiked 8.3%. The gain was most likely not due to Wall Street’s hopes of rate cuts igniting a major appetite for breadsticks, but rather a reaction to Darden’s partnership with Uber Eats announced Thursday morning.
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