After relentless selling that began on July 11, 2024, Nasdaq (QQQ) added 2.96% on Wednesday. Federal Reserve Chair Jerome Powell said that if the U.S. followed its expected path, the central bank could cut rates as soon as September.
The Fed Funds rate is still at 5.25% to 5.50%. These are higher for longer rates which lowers the attractiveness of fixed income such as REITs. Fortunately, REITs like Realty Income (O), Vici Properties (VICI), and EPR Properties (EPR) surged in recent weeks in anticipation of lower rates.
Crown Castle (CCI) and American Tower (AMT) are now nearing 52-week highs.
Investors scurried to buy back shares of Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), and Tesla (TSLA). They left out Microsoft (MSFT) after raising concerns that its Azure cloud unit did not grow fast enough. The rebound in the mega capitalization firms lifted Nasdaq as a result.
Qualcomm (QCOM) may fuel a rally in smartphone chip suppliers. The firm posted revenue of $9.39 billion, up by 11.3% Y/Y. Additionally, the firm issued strong Q4 guidance. It expects revenue in the range of $9.5 billion to $10.3 billion, higher than consensus estimates.
Looking ahead, watch Intel (INTC), Amazon, and Coinbase (COIN) tonight. Expect wide price movements after they report their quarterly earnings reports.
