The Nasdaq 100 Index witnessed its most significant surge in nearly a year, soaring 5.9% this week and concluding five consecutive sessions on a positive note.
This remarkable rebound follows a disheartening 5.8% decline last week, marking the index’s most challenging period in almost two years.
Tech Sector Reignites, Erasing Recent Losses
What prompted this rally? Positive economic indicators, such as subdued inflation rates, stable jobless claims, and an optimistic consumer sentiment index, fueled investor enthusiasm.
These factors reinforced market expectations of an impending interest rate cut by the Federal Reserve, the first in over four years, anticipated to be announced at the upcoming meeting next week.
Market sentiment is split between a 25-basis-point cut and a more assertive 50-basis-point reduction, with the latter gaining traction recently, as indicated by the CME FedWatch tool.
An analysis by Goldman Sachs highlighted the historical market performance following initial rate cuts.
If the U.S. economy avoids a recession post-rate reduction, equities tend to perform well in the subsequent three to six months. However, in the event of a recession, stocks typically exhibit weaker performance after a rate cut.
Standout Tech Stocks Lead the Charge
Several tech stocks showcased significant growth over the past week, contributing to the overall Nasdaq 100 surge. Here are the top-performing stocks:
| Name | Price Change % (5D) | Industry |
| Arm Holdings plc ARM | 26.00% | Semiconductors and Semiconductor Equipment |
| Broadcom Inc. AVGO | 22.53% | Semiconductors and Semiconductor Equipment |
| Super Micro Computer, Inc. SMCI | 18.39% | Technology Hardware, Storage and Peripherals |
| Warner Bros. Discovery, Inc. WBD | 17.24% | Entertainment |
| NVIDIA Corporation NVDA | 15.81% | Semiconductors and Semiconductor Equipment |
| Advanced Micro Devices, Inc. AMD | 13.60% | Semiconductors and Semiconductor Equipment |
| Constellation Energy Corporation CEG | 13.24% | Electric Utilities |
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