Home / Business and Economy / Fed Hints Rate Cut: Stocks Surge on Hope
Fed Hints Rate Cut: Stocks Surge on Hope
22 Nov
Summary
- US stocks rallied on positive signals from the Fed regarding potential rate cuts.
- Nvidia shares recovered on reports of possible H200 chip sales to China.
- Tech stocks and small-cap companies showed significant gains, boosting market sentiment.
US stock markets surged as Federal Reserve President John Williams suggested that monetary policy remains "modestly restrictive," opening the door for further rate adjustments. Investors interpreted these remarks as a strong signal for a potential rate cut in December, boosting confidence across various sectors. This outlook significantly benefited rate-sensitive stocks and large technology firms, contributing to a broad market rally.
Nvidia shares experienced a notable rebound after reports surfaced that the Trump administration might permit sales of its H200 chips to China. This news, coupled with analyst upgrades and projections of long-term growth, propelled Nvidia's stock upward. Similarly, Alphabet saw gains due to excitement over its new Gemini 3 AI model and strong performance in TPUs, outperforming other "Magnificent Seven" stocks.
