The Fed's Interest-Rate Cut Is Lifting Magnificent 7 Stocks Today

Justin Sullivan / Staff / Getty Images

David Marino-Nachison
1 min read


Key Takeaways

  • Tech stocks are jumping in the wake of Wednesday's rate cut by the Federal Reserve.

  • All of the Magnificent Seven stocks are on the rise.

  • Staples, utilities and real estate stocks were recently in retreat.



Stocks are racing ahead today, with tech stocks out in front.

The S&P 500 is climbing in Thursday morning trading, up about 1.7%. Its IT sector was recently up some 3.4%, while the communications services sectorā€”home to companies like Facebook parent Meta Platforms (META), Netflix (NFLX) and Alphabet (GOOGL)ā€”was ahead by 2.4%. The consumer discretionary sector, which includes Tesla (TSLA) and Airbnb (ABNB), was up about 2%.

All of the Magnificent Seven stocksā€”Meta, Alphabet and Tesla, as well as Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN) and Apple (AAPL)ā€”were recently in the green, led by Tesla and Nvidia. The PHLX Semiconductor Index was up close to 5%.

The Federal Reserve yesterday kicked off a rate-cutting cycle, cutting its benchmark rate by 50 basis points and setting the table for further cuts ahead. Today thatā€™s been good news for tech stocks, as well as leading cryptocurrencies. Bitcoin recently traded around $63,255.

Not all of the benchmark S&P 500 was rising. Staples, utilities and real estate stocks were recently in the red. The blue-chip Dow industrials also rose, though a third of its components were recently in retreat.

Read the original article on Investopedia.

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