Dovish Fed to Unleash Further Gains for Tech’s AI-Driven Rally

Tech investors looking to the Federal Reserve for signs that the highest interest rates in a generation will soon be easing, have reason to celebrate.

Officials on Wednesday signaled that three quarter-point rate cuts are still likely in 2024, even as inflation’s downward trajectory looks choppier. That bolstered optimism that companies will be able to deliver strong earnings growth, with Nasdaq 100 Index gaining more than 1% at Thursday’s open, bringing the tech-heavy gauge to a record high.

“This is not restrictive policy anymore,” said Ken Mahoney, president and chief executive officer of Mahoney Asset Management. “So I think ...