Wall Street Rallies Amidst Fed's Rate Cut Signals and Meta's Positive Forecast

Wall Street's key indexes launched August on a high as optimism swelled from the Federal Reserve's indications of a September rate cut and robust sales forecasts from Meta Platforms. Although megacap and chip stocks experienced some pullbacks, the overall market sentiment remained positive.

Meta Platforms surged by 6.5% in premarket trading, thanks to a second-quarter revenue beat and an encouraging third-quarter sales forecast. This optimism was driven by hopes that Meta's AI investments would pay off. Kathleen Brooks, research director for XTB, noted that investors are currently overlooking increased capital expenditure in favor of strong revenue growth.

Markets have been jittery recently, pending signs that major tech companies can sustain their gains amid AI excitement and potential rate cuts. Among other significant moves, Apple and Amazon rose while Tesla saw a slight decline. Nvidia, a favorite in the AI-trading circles, added $330 billion to its market value, marking a record one-day gain.

(With inputs from agencies.)