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.
Zhixingtong Finance APP learned that, according to an investor report from Wedbush, if the Fed cuts interest rates this week, a series of technology stocks may benefit, especially the hottest companies in the field of artificial intelligence, such as $NVIDIA (NVDA.US)$.
Wedbush analyst Daniel Ives stated: "In short, we believe that with the Federal Reserve and Powell launching an interest rate cut cycle this week, a macro soft landing is still possible. The spending of technology companies in the field of artificial intelligence is still in the early stages of the cycle. We believe that technology stocks are ready for a rise by the end of this 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 rate cut, including $Microsoft (MSFT.US)$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 for artificial intelligence is expected to reach $1 trillion in the coming years. He added, "As more and more technology suppliers show the monetization aspect of artificial intelligence, this will ultimately drive the next phase of the technology stock bull market in a very stable overall IT spending environment. We believe this is a bullish background for technology stocks."
The Federal Reserve will announce its interest rate decision for September this Thursday morning Beijing time. The market generally expects it to start an easing cycle, but there is still disagreement on whether it will cut rates by 25 basis points or 50 basis points. Currently, the market estimates a 67% probability of the Federal Reserve cutting rates by 50 basis points this week, higher than the 50% or so last Friday.
Although most traders expect a 50 basis points interest rate cut by the Federal Reserve, UBS analyst Paul Donovan believes that a cut larger than 25 basis points seems unlikely. He stated, "While the Federal Reserve is cutting rates late, a larger rate cut may be seen as a signal of panic." "More frequent interest rate cuts seem more likely than larger rate cuts."
Editor/Somer
