Tech stocks rallied Wednesday after the Federal Reserve delivered a 25-basis-point rate cut and Fed Chair Jerome Powell signaled more easing could be coming — a shift partly driven by a cooling labor market and growing downside risks to employment.
The Nasdaq 100 – as closely tracked by the Invesco QQQ Trust (NASDAQ:QQQ) – recouped all morning losses and turned positive heading into the close, reclaiming the 24,200-point area. Tech stocks had slumped earlier in the session, with AI-linked names like Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO) and Palantir Technologies Inc. (NYSE:PLTR) falling as much as 3% after China announced a ban preventing domestic firms from purchasing Nvidia's AI chips.
