Rollercoaster Ride: US Stocks Soar on Rate Cut Anticipation
The past month on Wall Street has been a wild ride, but this week has brought a refreshing surge of optimism fueled by hopes of interest rate cuts. The Dow Jones Industrial Average has cruised to its fourth consecutive winning session, while the S&P 500 has ascended for the last four days.
Tech Stocks Ignite the Rally
Tech giants, buoyed by the prospect of lower interest rates, have spearheaded this surge. Meta, Alphabet, and Amazon have all soared in recent weeks, adding rocket fuel to the rally.
“Any shift in investor sentiment regarding the Fed’s rate hike trajectory and the volatile Middle East situation could inject further volatility,” cautions UBS. “However, ahead of upcoming catalysts like Nvidia’s earnings report and prominent industry conferences, we’re buoyed by the positive tech sector fundamentals witnessed during the first-quarter reporting season, which continue to bolster the case for investing in cutting-edge AI.”
China Tech Surge Gains Momentum
Meanwhile, analysts cast an increasingly rosy light on China’s tech sector. China has emerged from a prolonged slump, and Bernstein predicts that this rally has ample room to run, especially in growth stocks.
“We advocate actively pursuing momentum stocks across the region, with particular emphasis on technology,” Bernstein advises.
Investing on the Stock Market Rollercoaster
To help investors navigate the ups and downs of the market, CNBC Pro and FactSet have joined forces to identify promising stocks from four dynamic exchange-traded funds (ETFs) focusing on China’s internet sector, global information technology, and China’s multisector tech realm:
Top Stock Screeners:
- Outperformed the S&P 500’s year-to-date gain of approximately 9%
- Analysts forecast an upside potential of over 20%
- Covered by six or more analysts
- Received a “buy” rating from at least half of analysts
The following stocks emerged from this rigorous screening process:
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- JD.com (JD)
- Ctrip.com International (CTRP)
- Baidu (BIDU)
- IQiyi (IQ)
- NetEase (NTES)
- Alibaba (BABA)
- Tencent (TCEHY)
- Bilibili (BILI)
- Baozun (BZUN)
- Full Truck Alliance (YMM)
These shortlisted stocks present intriguing opportunities for investors seeking to ride the current market surge. As always, it’s crucial to conduct your own research and consult with a financial advisor before making any investment decisions.
