Tue Sep 17 07:12:22 UTC 2024: ## Tech Takes a Backseat as Investors Eye Rate Cuts and Other Sectors

**New York, NY (September 4, 2024)** – The Dow Jones Industrial Average closed at a record high on Monday, fueled by expectations of an upcoming interest rate cut by the Federal Reserve. While tech stocks, traditionally favored during periods of low interest rates, saw a slight dip, investors shifted their focus to other sectors potentially benefiting from lower borrowing costs.

The S&P 500 edged up 0.13%, while the Nasdaq Composite fell 0.52%, indicating a shift in investor sentiment away from tech-heavy companies.

**Financial and energy sectors** performed particularly well, gaining over 1% on Monday, suggesting a growing interest in these areas as rate cuts become more likely. Goldman Sachs noted that hedge funds significantly increased their purchases of financial stocks last week, marking the highest level since June 2023.

The market is currently pricing in a 67% chance of a 50 basis point rate cut by the Fed this week, according to the CME FedWatch Tool. This move would significantly impact borrowing costs, potentially benefiting sectors like financials and energy.

Christopher Barto, senior investment analyst at Fort Pitt Capital, stated that while tech remains a key market driver, other sectors are starting to show promise as investors anticipate lower interest rates.

**International markets** were mixed, with the Japanese Nikkei 225 falling 1.03% as the yen strengthened against the U.S. dollar. However, Hong Kong’s Hang Seng index rose 1.15%, boosted by the strong debut of Midea Group shares.

**The Bank of Japan** is expected to hold its interest rates steady at its September meeting. However, analysts are divided on the likelihood of a rate hike in October or December.

**Intel** shares surged in after-hours trading following the announcement of plans to structure its foundry business as an independent unit. The move could potentially lead to a spin-off as a public company, according to sources.

**In other news**, the Biden administration awarded Intel up to $3 billion under the CHIPS Act, further supporting the company’s efforts in the semiconductor industry.

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