Traders work on the trading floor of the New York Stock Exchange on June 14, 2024.
Brendan McDermid | Reuters
this Nasdaq Index Gains on Thursday as the tech-heavy benchmark appeared to rebound from its worst trading day since 2022.
The index rose 0.3%, S&P 500 Index. this Dow Jones Industrial Average Also up 0.3%.
On Wednesday, the Nasdaq fell 2.8%, its worst single day since December 2022, and closed below 18,000 points for the first time since July 1.
Wall Street has been selling off artificial intelligence stocks this year as the growing likelihood of a rate cut in September has boosted optimism in the broader market. This is particularly helpful for small caps and more cyclical stocks, which are seen as beneficiaries of lower borrowing costs.
This explains why small caps are concentrated Russell 2000 It has risen more than 9% in the past five trading days. The index was essentially flat on Thursday after snapping a five-day winning streak in the previous session.
In comparison, the Nasdaq fell more than 3% during the same period. Wednesday was also the first time since 2001 that the Nasdaq fell more than 2.5%, while the blue-chip Dow Jones rose.
“This is a market — the Fed’s pivot market — that’s bigger than us,” Lauren Goodwin, chief market strategist at New York Life Investments, said on CNBC’s “The Closing Bell.” Expected rate cuts come two or three months in advance. “There’s been a big lift in areas like small caps and other areas of the risk market where capital is really being released. “
In corporate news, Explore Finance Shares rose 2% after second-quarter results beat expectations. beyond meat It then plummeted about 9.5% According to the Wall Street Journal, The meat-alternative company is meeting with bondholders to begin discussions about restructuring its balance sheet, people familiar with the matter said.
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