Wall Street traders gearing up for Wednesday’s Federal Reserve decision sent stocks to fresh all-time highs amid gains in a handful of big techs.
Equities erased losses after a rebound in the “Magnificent Seven” cohort of tech megacaps — dubbed the “most-crowded trade” by Bank of America Corp. Nvidia Corp. rose on bets its new chips will fuel a rally that’s already added US$1 trillion to the company’s value this year. Bonds also gained after a rout that saw traders pushing back their timetable for rate cuts.
Investors should buy the dip in stocks in the case of pullbacks amid a backdrop of good economic growth and inflation normalization, according to Goldman Sachs Group Inc. strategists led by Christian Mueller-Glissmann.
“While equity momentum has somewhat supported broader risk appetite, we see limited implications of a continued reversal barring a material U.S. rate shock,” they said.
The S&P 500…
