The Nasdaq 100 Index just achieved its most substantial weekly performance in nearly a year, soaring 5.9% higher and culminating in five consecutive green sessions.
What led to this remarkable rally? Last week’s sharp 5.8% drop, the index’s most substantial decline in almost two years, was promptly overshadowed.
Tech Sector Rebounds With 5.9% Surge Erasing Previous Losses
The surge was triggered by a stream of upbeat economic data, showcasing controlled inflation, consistent jobless claims, and a positive consumer sentiment report.
This data reinforced market anticipation of the Federal Reserve’s potential announcement of its first interest rate reduction in over four years during the forthcoming meeting.
The current market odds favor either a 25-basis-point cut or a more assertive 50-basis-point cut, with the latter gaining traction recently, as indicated by the CME FedWatch tool.
Goldman Sachs’ recent analysis delved into the stock market’s typical performance post the initial rate cut.
Historically, if the U.S. economy remains recession-free post-rate cut, stock performance tends to be positive over the ensuing three to six months. Conversely, should a recession ensue, stocks tend to underperform after a rate cut.
Top 7 Tech Stocks Leading the Rally This Week
Several tech stocks exhibited remarkable growth over the previous five days, contributing significantly to the Nasdaq 100’s upswing. Here are the top-performing stocks:
| Name | Price Chg. % (5D) | Industry |
| Arm Holdings pic ARM | 26.00% | Semiconductors and Semiconductor Equipment |
| Broadcom Inc. AVGO | 22.53% | Semiconductors and Semiconductor Equipment |
| Super Micro Computer, Inc. SMCI | 18.39% | Technology Hardware, Storage and Peripherals |
| Warner Bros. Discovery, Inc. WBD | 17.24% | Entertainment |
| NVIDIA Corporation NVDA | 15.81% | Semiconductors and Semiconductor Equipment |
| Advanced Micro Devices, Inc. AMD | 13.60% | Semiconductors and Semiconductor Equipment |
| Constellation Energy Corporation CEG | 13.24% | Electric Utilities |
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