In a plot twist reminiscent of a phoenix rising from the ashes, the Nasdaq 100 Index staged a triumphant comeback, boasting its best weekly performance since October 2023. The index surged 5.9% higher, painting the trading week green through five consecutive sessions.

The recent rally marked a sharp reversal from the previous week’s gut-wrenching 5.8% nosedive – the index’s worst weekly performance in nearly two years.

Technology Stocks Lead the Charge With a 5.9% Rebound

What fueled this exhilarating rally? Investors found renewed hope in a robust set of economic indicators, revealing subdued inflation, stable jobless claims, and an optimistic consumer sentiment report.

Furthermore, this encouraging data solidified market expectations of an impending interest rate cut by the Federal Reserve, the first in over four years, poised for announcement in the upcoming pivotal meeting.

Currently, the market is evenly split on the odds of a 25-basis-point cut versus a more assertive 50-basis-point slash, with the latter gaining traction in recent hours as revealed by the CME FedWatch tool.

An insightful analysis by Goldman Sachs shed light on historical market performance post-rate cuts. The key takeaway: should the U.S. economy evade a downturn post-cut, stocks tend to shine in the ensuing three to six months. Conversely, if a recession ensues, stocks typically stumble after a rate reduction.

Top 7 High-Flying Tech Stocks of the Week

Several tech stocks stole the spotlight over the past trading week, contributing significantly to the Nasdaq 100’s resounding rally. Here are the star performers:

Read Next:

Photo: Shutterstock