Tech Retakes Market Leadership as Fed Hikes Rates to 3.75%-4.00%

Zacks Investment Research··US·Read original
3▲5 ▼0Impact / 5
Summary · why it matters

Technology has quietly retaken market leadership heading into the fourth quarter, even after the Federal Reserve raised interest rates for the first time since July 2023 and signaled it isn't finished. The FOMC raised its target range 25 basis points to 3.75%-4.00% on a unanimous 12-0 vote, with Chair Kevin Warsh saying inflation is too high and has been for too long, while the ten-year Treasury yield touched over 5%, its highest level since July 2007. Of the 18 officials submitting forecasts, 16 see at least one additional hike this year, and the median end-2026 dot sits near 4.1%, while the committee raised its core PCE forecast to 3.4% from 3.3% and pushed the expected return to 2% inflation out to 2029. Despite the hawkish backdrop, the Nasdaq climbed about 2% between the last two sessions of the week, reclaiming its 50-day moving average as investors rotated back into memory and chipmakers, with SanDisk surging nearly 11% on Friday to lead the S&P 500 and AMD closing within striking distance of its 52-week high. Advanced Micro Devices closed Friday at $559.82, up 2.7% on the session and roughly 161% year-to-date from a January starting point near $215, putting its market capitalization at about $914 billion, while SanDisk jumped 10.99% Friday to end just under $1,800 and is up more than 650% year-to-date, aided by a structural NAND flash shortage and its confirmation to join the S&P 100 on Monday.

Impact on assets 5

Semiconductors▲
Sandisk Corp
SNDK
▲ PositiveSupplyrelevance

SanDisk surged nearly 11% Friday, aided by a structural NAND flash shortage and its confirmation to join the S&P 100.

Artificial Intelligence▲
Advanced Micro Devices Inc
AMD
▲ PositiveDemandrelevance

AMD closed near its 52-week high as investors rotated back into chipmakers, part of the tech leadership rotation.

Digital Finance & Tokenization▲
Nasdaq Inc
NDAQ
▲ Positiverelevance

Nasdaq climbed about 2% as tech retook market leadership, but the article gives no company-specific driver for Nasdaq Inc.

Others▲
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

The FOMC raised the target range 25bp to 3.75%-4.00% on a unanimous vote, lifting the effective federal funds rate.