Fed commentary could give a further shot in the arm to AI names that have been market leaders, but the broader semiconductor sector still faces challenges and skepticism.

The decision by the Fed's policy-setting committee to cut interest rates for the first time since March 2020 was prefaced by an unusual amount of market uncertainty as to how much the central bank would lower its benchmark rate from a two-decade high of 5.25% to 5.5%, where it has stood since July 2023.