Why Super Micro Computer Stock Popped 17.5% This Week
Shares of Super Micro Computer (NASDAQ: SMCI) are up 17.5% this week, as of Thursday's close, according to data provided by S&P Global Market Intelligence. This follows encouraging macroeconomic developments and a positive analyst note for several industry peers.
Super Micro Computer started the week strong, with a 5% pop on Monday. This was fueled by a combination of multiple reports suggesting Wall Street analysts expect the U.S. Federal Reserve to implement an extended policy of rate cuts for the next couple of years.
After raising rates at a historic pace to curb inflation for the better part of the last two years, U.S. central bank officials are widely expected to cut rates as many as six times next year alone -- likely in .25 percentage point increments. That's great for rate-sensitive growth stocks like Super Micro, which tend to look more attractive to investors relative to fixed-income alternatives as rates decline.
Source Fool.com
