The U.S. Federal Reserve's bumper 50-basis-point interest rate cut has been the talk of the market as investors evaluate sectors and stocks.
Kingsley Jones, a chief investment officer at the Sydney-headquartered Jevons Global, says the rate cut has "supported the market."
Avoid semiconductor equipment Jones is avoiding sectors like semiconductor equipment that companies have been spending more on, following interest in building AI infrastructure and chip factories.
He warned of the impact that U.S. sanctions might have on semiconductor equipment plays.
"So, I'd avoid the semi equipment sector trade out of that," he added.
Persons:
Kingsley Jones, Jevons, Jones, it's, wasn't
Organizations:
U.S, Sydney, Tech, Big Tech, Nvidia, AbbVie Inc, Costco, Oracle
Locations:
Federal, United States, China