Wall Street is cautiously optimistic despite correction
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Wall Street is cautiously upbeat as investors await key tech earnings and the Federal Reserve’s policy decision.
The market has been characterised by a rotation into beaten-down stocks, while small-caps continue to outperform amid hopes for interest rate cuts.
Tech stocks, particularly those with exposure to artificial intelligence, are driving optimism after strong Q2 results from companies like AMD.
This sector’s performance, coupled with growing expectations of a September rate cut, has contributed to a decline in bond yields and a rally in dollar-denominated commodities.
Despite geopolitical tensions, investors are leaning towards safe-haven assets, further reinforcing the belief that the Federal Reserve will ease monetary policy.
The market is currently positioned for a potential year-end market high, but this outlook remains contingent on upcoming economic data and corporate earnings.
