Tech Rebounds on Rate Cut Expectations
Tech ETFs bounced back strongly after last week's decline, with the semiconductor subsector experiencing impressive gains. This market rally was largely driven by shifting expectations for future Federal Reserve rate cuts, creating a wave of optimism for growth stocks.
Semiconductors Lead the Charge
The semiconductor subsector outperformed the broader tech sector. The S&P Semiconductors Select Industry Index jumped 7.85% over the week. Notable names like Broadcom Inc (NASDAQ:AVGO) and Nvidia (NASDAQ:NVDA) saw substantial gains. Broadcom soared by 22.40% and Nvidia rebounded by 15.84%.
Palantir and Dell Benefit from S&P 500 Inclusion
Palantir Technologies (NYSE:PLTR) made headlines with a remarkable 17.34% increase in its stock price following the announcement of its upcoming inclusion in the S&P 500, replacing American Airlines (NASDAQ:AAL). Similarly, Dell Technologies (NYSE:DELL), which is set to replace Etsy (NASDAQ:ETSY) in the index, saw a 12.06% gain. Inclusion in the S&P 500 often boosts visibility and attracts investment inflows, which explains these upward moves.
Tech ETFs on the Rise
Tech funds reaped the benefits of the sector's strong performance. The iShares S&P 500 USD Information Technology Sector UCITS (LON:IUIT) jumped 7.44%, while the Xtrackers MSCI World Information Technology UCITS ETF 1C (LON:XDWT) rose by 7.08%. These ETFs, which track a diversified range of tech stocks, are positioned to continue gaining as the market anticipates further rate cuts.