US Tech Sector Surges on Eased Rate-Hike Expectations
The US tech sector saw a significant rally as Federal Reserve Governor Waller eased rate-hike expectations. Speaking about inflation, Waller stated that it has shown signs of easing and would support rate hikes if the data rebounds. He cited three reasons for this stance: underlying core inflation is performing better than indicated by core data, with half of July's core PCE price index increase stemming from non-market service prices; he no longer views elevated energy prices and tariffs as long-term sources of persistent inflationary pressure.
The S&P 500 Index gained 1.07% to close at 7,748 points, while the Nasdaq Composite Index advanced 1.40% to close at 26,584 points. Tech stocks such as SpaceX surged over 6%, Tesla rose over 4%, Meta gained over 3%, Microsoft advanced over 2%, and Nvidia climbed over 1%. However, Cisco Systems closed down 0.78%, highlighting divergent trends among AI infrastructure stocks.
Bitcoin (BTC) rose 5.4% to $81,002.69, while Ethereum (ETH) gained 5.3% to $2,500.73. The surge in tech stocks was also attributed to the US August ISM Services PMI, which expanded beyond expectations with a price gauge hitting a four-year high.