Stock markets in the U.S. break two records by doubling their value.
In the dynamic world of finance, the impact of the US Federal Reserve's interest rate decisions and the US-China trade truce on big tech companies like Alphabet Inc., Nvidia, and AMD, is a topic of great interest.
Impact of US Federal Reserve Interest Rate Decisions
The Federal Reserve's cautious stance, with interest rates maintained between 4.25% and 4.50%, reflects a delicate balance between persistent inflation and a resilient economy. This posture can potentially influence stock prices by affecting the cost of capital across the economy.
Investors closely watch the Fed's decisions, as a cut in interest rates could stimulate growth but might also fuel inflationary pressures. Conversely, maintaining or increasing rates could slow down growth but control inflation. In July 2025, the Fed's decision to maintain interest rates led to a positive response from US stocks, including a slight increase in the Dow Jones Industrial Average, Nasdaq Composite Index, and S&P 500 Index.
Impact of US-China Trade Truce
The ongoing trade tensions and tariffs imposed by the U.S. on China have significant implications for big tech companies. Companies like Nvidia and AMD have had to adjust their supply chains and stockpile inventory to avoid price hikes. The uncertainty and volatility created by trade tensions can lead to stock price fluctuations, but tech companies have shown resilience by adapting their supply chains and strategic planning.
The trade truce between the US and China, extended until November 10, offers a glimmer of stability. However, the imposition of tariffs has not yet significantly impacted consumer prices, but core inflation is expected to rise, potentially affecting consumer spending and tech sales.
Specific Impact on Alphabet Inc., Nvidia, and AMD
While not directly impacted by tariffs as much as hardware companies, Alphabet's growth could be influenced by broader economic trends affected by interest rates and trade policies. Nvidia's focus on AI and domestic manufacturing might help mitigate risks, while AMD's stock performance has shown resilience amidst these challenges.
Intel's stocks gained 5.6 percent due to a positive meeting between CEO Pat Gelsinger and US President Donald Trump. Perplexity AI submitted an unsolicited offer of $34.5 billion to acquire Google's browser, Chrome, which, if successful, could secure access to over three billion users.
In conclusion, the impact of US Federal Reserve interest rate decisions and US-China trade truce on big tech companies is multifaceted. While interest rate policies can influence borrowing costs and economic growth, the ongoing trade tensions necessitate strategic supply chain adjustments to mitigate tariff risks. These factors contribute to the volatility and resilience observed in the stock prices of companies like Alphabet Inc., Nvidia, and AMD.
Katherine Bordlemay of Goldman Sachs Asset Management recommended continuing to bet on the theme that the big tech companies get bigger, with the S&P 500 closing at 6,446 points, rising 1.1 percent, and the euro gaining 0.5 percent against the US dollar. Alphabet Inc. rose by about 1.2 percent, Intel's stocks gained significantly, and both Nvidia and AMD recovered initial losses and closed slightly higher. The Nasdaq and S&P 500 reached record highs, while the Dow Jones closed at 44,459 points, gaining 1.1 percent.
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