The stock market experienced a surge as investors rallied on the optimism surrounding artificial intelligence and speculation about a potential rate cut. Meta, formerly known as Facebook, made significant gains late in the day, while tech company Arm faced a decline. The Dow Jones Futures rose along with the S&P 500 futures following Meta’s positive quarterly results which exceeded expectations.
The Federal Open Market Committee (FOMC) held a meeting where they decided to keep interest rates unchanged. However, Federal Reserve Chairman Jerome Powell hinted at the possibility of a rate cut in September. This news boosted market confidence and contributed to the positive gains seen in the stock market. Investors are closely watching for any indications from the Fed regarding future monetary policy decisions.
Technology stocks, particularly Nvidia, saw a significant increase in value with a 12% surge in stock prices. The positive sentiment in the market was further reinforced by Powell’s comments, which hinted at a potential rate cut in the near future. Overall, the stock market ended the month of July on a high note, with many investors optimistic about the potential for future gains.
