Tech Stocks Surge to New Highs, Propelling Markets as Fed Rate Cuts Seem Less Likely
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The S&P 500 and NASDAQ indexes reached new record highs, led by surging technology stocks like Microsoft, Tesla, Netflix, Meta Platforms, and semiconductor companies.
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Microsoft briefly became the second company after Apple to top a $3 trillion market valuation.
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Tesla stock fell on disappointing earnings, but the "Magnificent Seven" mega-cap tech stocks have still outperformed the broader market.
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Strong business activity data has dampened expectations of imminent Fed rate cuts, with traders now seeing little chance of a cut before May.
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Some analysts wonder if the tech-led stock surge is inflating a bubble similar to the dot-com bubble of the 1990s.