US stock index futures were modestly firmer in early trade this morning as investors prepared for the Federal Reserve’s interest rate decision later in the day. On Tuesday, there was a weaker tone, despite the Dow briefly breaking above 52,000 for the first time and closing at an all-time high.
All the other majors posted losses for the session, led by some sharp declines across semiconductor stocks, and tech more generally. The NASDAQ 100 lost close to 2%, while the Russell and S&P 500 fell 0.9% and 0.6%, respectively. The Dow continues to get a lift through some market rotation, whereby funds that come out of the growthy tech sector tend to be redirected into stocks perceived as offering better value.
In fact, a look at Caterpillar’s stock price proves that investors don’t have to load up on tech to get results. The world's largest manufacturer of construction equipment hit a fresh all-time high yesterday, having gained over 270% since April last year.
Source: TN Trader
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