Chip stocks bolster Nasdaq, S&P 500 before Fed verdict

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Chip stocks bolster Nasdaq, S&P 500 before Fed verdict
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Chip stocks bolster Nasdaq, S&P 500 before Fed verdict

were poised to open sharply higher on Wednesday after a bullish forecast from AMD boosted struggling chip stocks, while Microsoft soared 7.5% in premarket trading after it lifted its 2024 forecast for AI-chip sales, raising other chip stocks. Nvidia (NASDAQ:

"AMD's results pleased investors more than Microsoft's disappointed, and as a result people are adding to positions in the semiconductor space," said Sam Stovall, chief investment strategist at CFRA Research. Quarterly earnings from tech giants Tesla, Microsoft and Alphabet have so far disappointed investors, who are questioning if the AI-driven rally has run out of steam.

With traders fully pricing in a cut by September, according to CME's FedWatch, the fear is that any disappointment on this front could amplify the recent equity selloff.

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