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Another 25bp Rate Cut! What's next for the market?
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The bottom line

Technology stocks benefit the most from low interest rates, conventional market wisdom says.
That’s because tech companies tend to promise future profit in exchange for present money. When rates are low, that proposition appears attractive because returns are low elsewhere. But when rates are high, those promises don’t seem as attractive as less risky returns from assets such as Treasurys.
The past two years have demolished this narrative. Tech has soared even as interest rates have been at 23-year highs, thanks to enthusiasm over artificial intelligence’s promise of new and explosive revenue streams.
Despite rates at 23-year peaks, tech's on fire!🔥 $NVIDIA (NVDA.US)$ , AI's powerhouse, up 136% this year alone! $Meta Platforms (META.US)$ 's Llama-fueled ride? 51% higher.🚀
Now, The Fed has pulled the trigger and slashed rates by a hefty 50 basis points.📉 Tech's ready to surge again, right? But watch this twist...Tech's been bumpy lately. Semis slip, Nvidia dips, Nasdaq takes a breather. But investors are shuffling decks, eyeing financials & energy for rate-cut windfalls. Monday saw +1% gains in those sectors! $Exxon Mobil (XOM.US)$ $PayPal (PYPL.US)$
So, what's the play? Don't ditch tech just yet—it's still got legs. But consider spreading your wings and diversifying your portfolio.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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