With rate-cut expectations climbing, attention is turning toward whether battered technology stocks can recover. Futures are up, reflecting renewed hope, but the tech sector still faces headwinds. On one hand, lower interest rates tend to help growth-oriented tech firms by reducing discount rates on future earnings and making capital more accessible. On the other hand, many tech stocks have already been weighed down by high valuations, earnings concerns, and global headwinds. This means even if optimism returns, the tech rebound may not be straightforward. Some investors may remain cautious until clearer signs of recovery appear. What markets are really watching: does the economy slow enough to force a rate cut, or will it remain strong, which might keep rates higher for longer? The answer will matter a lot for tech. Overall, the scenario is that better tone in futures and rate expectations gives hope but it comes with caveats.
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