Federal Reserve And Technology Stocks

 

After the Federal Reserve obviously pivoted this week towards striving to lower the Federal Funds Rate in the coming months, many Wall Street research analysts forecast a warm spring or rising levels for stock markets, US technology stocks especially.

Actually, with high interest rates levels already, we could see a medium banking crisis in the coming months as the one with Silicon Valley Bank and First Republic Bank, which caused a real crisis with US regional banks and their stock prices fell more than 30 % on average in the space of a couple of weeks.

Otherwise, technology stocks are set to benefit in the mid-term from the Federal Reserve lowering interest rates levels. Lower rates will feed into cheaper loans form medium US technology enterprises and will increase the attractiveness of US venture capital funds, which make for about 70 % of the venture capital investments in technology startups globally.

Artificial intelligence, AI, Bitcoin, cryptocurrencies, biotechnology, health technology, deep learning stocks are set to benefit the most from the lower rates pressure administered by the Federal Reserve, according to Wolfteam Ltd.'s corporate view. Or emerging technology companies, with other words.

Particular names are Amazon, Alphabet, Google owner, Meta, Facebook owner, Microsoft, OpenAI, Apple, Arista Networks, NVIDIA, Tesla, Coinbase, Robinhood Markets, Moderna, other biotechnology companies, Snap, Snapchat owner, Pinterest, Roku, Netflix. Other emerging tech companies, also.