💻 Tech Stocks Rally as Fed Rate Cut Boosts Sentiment, Nvidia Becomes World's First $5tn Company | Tech Sector Insights
(VGT) gained 0.6% following the Federal Reserve’s 25 bps rate cut, fueling optimism across technology equities. Nvidia surged past a $5 trillion market cap after its developer conference spotlighted AI innovation, lifting sector sentiment. AVGO and TER advanced on strong Q3 results.
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Wednesday, October 29
VGT [+0.6%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has seen a price increase of 0.6% since Tuesday. The Federal Reserve recently cut the federal funds rate by 25 basis points to a range of 3.75%-4%, a move expected to bolster growth in technology stocks. Nvidia's stock surged, becoming the first company with a market capitalization exceeding $5 trillion, following positive developments at its developer conference. This momentum could positively influence tech-focused ETFs like VGT. Among VGT's holdings, significant contributors included Nvidia, Broadcom, and Advanced Micro Devices, with Nvidia's valuation driven by strong demand for AI chips and analysts raising price targets. Broadcom experienced bullish options trading and favorable analyst ratings, while Teradyne reported strong Q3 results that exceeded estimates. Advanced Micro Devices is set to announce its third-quarter earnings, supported by a transformative agreement in the AI sector.