Wall Street took profits in high flying technology stocks on Wednesday, rotating into cheaper corners of the market after the Federal Reserve delivered a widely expected interest rate cut under what Chair Jerome Powell described as an “unusual” situation of emerging labor-market weakness while inflation remains elevated.
A basket tracking the Magnificent Seven stocks including Nvidia Corp. and Alphabet Inc., slid 0.4% to snap a four-day winning streak. The group has surged nearly 60% since early April and is priced at 30 times projected profits up from nearly 22 times at the time, according to data compiled by Bloomberg.