Tech Titans Surge: Big Seven Add $1 Trillion Amid Fed Speculation and Oracle's Ascent
1min read This week marked a significant upswing for U.S. tech stocks, with the collective market capitalization of the so-called "Big Seven" — Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, and Tesla — surging by over $1 trillion. These gains come amid widespread market optimism, driving Nasdaq nearly 6% higher after a recent downturn, signaling a renewed enthusiasm among investors.
Individually, these tech giants posted notable increases: Apple rose by 0.76%, Microsoft by 7.19%, NVIDIA by 15.83%, Amazon by 8.81%, Alphabet by 4.47%, Meta by 4.87%, and Tesla by 9.28%. NVIDIA alone added an impressive $399.1 billion to its market cap, further underlining the robust demand for tech stocks this week.
The broader market also experienced a boost, partially driven by speculation regarding the Federal Reserve's monetary policy. Market participants are closely watching potential changes in interest rates, with increasing bets on the possibility of a soft economic landing despite recent volatility.
Adding intrigue to the tech sector's rally, Oracle's shares climbed over 14%, elevating its founder Larry Ellison's net worth to surpass that of Jeff Bezos, briefly making him the world's second wealthiest person. This is particularly fueled by Oracle's strong quarterly performance, with cloud infrastructure revenue surpassing expectations.
The surge in tech stocks coincides with broader economic indicators pointing towards potential monetary easing by the Fed. Analysts have observed that the market sentiment is ripe for risk assets, as the possibility of interest rate cuts looms larger.
As anticipation builds around the Fed's next moves, traders have adjusted their expectations for a 50-basis-point rate cut to 41%, a substantial increase from previous estimates. Such market dynamics underscore the delicate balance the Fed must maintain to steer the economy amidst evolving financial landscapes.