Tesla, Nvidia lead tech-heavy Nasdaq to one of best days of 2024 after Fed rate cut
Summary
Investors poured into tech stocks at one of the fastest clips of the year a day after the Federal Reserve cut its benchmark interest rate for the first time since 2020. Lower interest rates tend to benefit tech stocks, because reduced borrowing costs and bond yields make risky bets more attractive. While the Nasdaq has been on a steady rise this year, powered by Nvidia and the enthusiasm around artificial intelligence, Thursdays rally pushed the benchmark to its highest since mid-July. Nvidia counts on a relatively small group of customers — namely Microsoft , Meta , Alphabet , Amazon , Oracle and OpenAI — for an outsized amount of revenue because those are the companies either developing large language models, hosting big AI workloads or doing both. AMD CEO Lisa Su told CNBCs Jim Cramer on Wednesday that AI is a very long game, and were at the early stages.
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