Why Netflix, Apple, Amazon, and Other FAANG-M Stocks Rocketed Higher Today
Uncertainty regarding the length and duration of the downturn have hung over the market like an anvil this year, with many investors afraid to buy the dip for fear of suffering further declines. Add to that the Federal Reserve Bank's relentless campaign of rising interest rates to combat persistent inflation, and it's no wonder that consumers and investors alike have shifted their behavior based on the tough macroeconomic conditions. However, the Fed changed its tone today, suggesting the pace of future interest rate hikes will moderate, perhaps as soon as next month.
With that as a backdrop, popular FAANG stocks were squarely in rally mode Wednesday afternoon. Netflix (NASDAQ: NFLX) surged 9.2%, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) jumped 5.4%, honorary member Microsoft (NASDAQ: MSFT) climbed 5.8%, while Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) each rallied 4.5% by the time the market closed on Wednesday.
There was no company-specific news that even came close to explaining the magnitude of these broad-based gains. This suggests that investors were reacting to the potential for slowing interest rate hikes and an overall improvement in the beleaguered economy.
Source Fool.com
