Shares of technology companies rose sharply as fears of a rate hike faded.
“There is a lot of optimism here that the Fed is nearing the peak of its rate hike campaign,” said Edward Moya, senior market analyst at foreign exchange brokerage Oanda Group. “There’s probably a lot more optimism … it looks like traders (are) becoming more confident that too much tightening won’t be a policy mistake.”
Currently, surveys show that investors’ expectations are for two or three quarters of rate hikes. A week ago, many investors were bracing for a half-percent increase; The shift in expectations has boosted technology stocks, which are particularly sensitive to interest rates.
Apple shares added to recent gains after analysts at brokerage Goldman Sachs said the computer and hardware giant could be poised for a 30% rise as investors take stock of rising services revenue.
Write to Rob Curran at rob.curran@dowjones.com
