Tech stocks rally after the open
While still firmly in the red, the Magnificent 7 tech stocks have managed to rally off the lows. Having watched these stocks surge of late, it is understandable that many investors will be tempted to go dip buying. But an elevated fear index suggests that the selling is not done yet. Investors will be watching for Iran’s response to Israel’s actions, and in turn Israel’s response, which could add a very unpredictable element into the situation.
Calls for emergency Fed rate cut misplaced
2024 has been a quiet year for markets in terms of actual volatility, so today’s slump in the US feels much worse than it actually is when put into context. Already there are a number of commentators calling for emergency US rate cuts, but at the moment this is still a growth scare. If the latest job numbers are revised higher next month the picture may start to look very different. Besides, the Fed’s job isn’t to rescue investors from volatility.
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