Traders prepare for Fed decisions and tech bargains on Friday

As traders prepare for the Federal Reserve's decisions on interest rates, there is significant concern regarding the potential impact on the market. Malcolm Ethridge from CIC Wealth emphasizes that a cut greater than 25 basis points could send a negative signal, reflecting the market's sensitivity to Fed meetings over the past two years. Investors are particularly anxious about how these decisions will influence market dynamics. In the tech sector, Broadcom's recent earnings report has led to a decline in its stock, as investors shift their focus towards new opportunities, particularly in artificial intelligence. Jordan Klein from Mizuho notes a change in sentiment, with investors moving from a strong preference for semiconductor stocks to a more cautious approach, seeking reasons to sell off previous winners. Amidst these shifts, Zscaler has emerged as a potential investment opportunity. Ethridge believes that the company could benefit from a trend where businesses reconsider their cybersecurity vendors following a significant IT outage attributed to a Crowdstrike update. This incident may prompt companies to diversify their cybersecurity strategies, creating openings for competitors like Zscaler. Additionally, there is an unusual rise in short interest against the SPDR S&P 500 ETF, indicating that investors are increasing short positions despite a rising market. This behavior typically suggests a cautious outlook among investors, further complicating the current market landscape.