HomeFinancial MarketsTech Stocks Rally After Federal Reserve Announcement

Tech Stocks Rally After Federal Reserve Announcement

U.S. tech stocks were up on Thursday morning after the Federal Reserve’s announcement regarding its latest interest rate hike on Wednesday night. In addition to implementing a smaller interest rate increase of 25 basis points, Fed Chair Jerome Powell expressed optimism regarding the direction of inflation, thereby boosting market confidence.

Futures listed on the S&P 500 gained 0.4% while those on the technology-heavy Nasdaq Composite jumped 1.2%. In contrast, futures on the Dow Jones Industrial Average retreated by 0.4%.

The Federal Reserve’s decision to shrink its interest rate increases came after economic data provided evidence of decelerating inflation over the past few months.

Meta Platforms led the tech stock rally, surging by 20% in pre-market trading after announcing quarterly earnings that exceeded expectations as well as a $40 billion stock buyback. Carvana shares jumped by 15%, marking a 200% year-to-date gain for the online used car seller.

Attention now turns to January’s jobs report, which is expected to be a critical factor to help investors determine whether or not there is evidence of an easing labor market.

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