3 Tech Stocks to Consider as Markets Eye 2024 Fed Rate Cuts
The U.S. stock market looks set to extend its strong performance in the new year as investors eye multiple interest rate cuts from the Federal Reserve in 2024.
As of Wednesday morning, financial markets see a roughly 72.5% chance of the Fed cutting rates as early as its March policy meeting, according to Investing.com’s Fed Rate Monitor Tool.
Odds are even higher for May, with U.S. rate futures pricing in a 97%+ chance of a rate cut.
Source: InvestingPro
Taking that into consideration, I recommend buying shares of Arista Networks (NYSE:ANET), Fortinet (NASDAQ:FTNT), and Super Micro Computer (NASDAQ:SMCI) amid increasing odds that the Fed is done hiking interest rates and will pivot to easing monetary policy in 2024.
All three tech companies still offer further upside in my view, despite their impressive 2023 performance, and have plenty of room to grow their respective businesses, making them solid long-term investments.
Arista Networks, a leader in cloud networking solutions, looks like a smart buy heading into 2024 as the economy continues to undergo a sea change of digitization.
The Santa Clara, California-based company's expertise in cloud networking solutions aligns well with the expected surge in demand for cloud infrastructure in a lower interest rate environment from large companies, government agencies, and educational institutions.
Arista’s robust suite of cloud-based networking products and its strong market presence position it favorably to capitalize on this trend, potentially driving sustained growth in 2024.
Demonstrating the strength and resilience of its business, Arista Networks sports a near-perfect InvestingPro ‘Financial Health’ score thanks to its pristine balance sheet, robust cash flow, and
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