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US Tech forecast: the index hits new all-time high after Fed rate cut

Posted on: Sep 20 2025

The US Tech index continues to grow steadily, reaching fresh all-time highs. The US Tech forecast for next week is positive.

US Tech forecast: key trading points

  • Recent data: the Federal Reserve lowered its key rate to 4.25% per annum
  • Market impact: this decision has a largely positive effect on the technology sector

US Tech fundamental analysis

The Federal Reserve’s decision to lower the key rate from 4.50% to 4.25%, in line with market expectations, sends a significant signal to US financial markets. The rate cut reflects the Fed’s intention to support economic activity amid slowing GDP growth and labour market weakness. Lower rates reduce borrowing costs for corporations and households, potentially stimulating investment and consumption. However, Jerome Powell’s accompanying comments pointed to persistent inflation risks, partly driven by tariff policy, which tempers excessive investor optimism.

US Fed Funds Interest Rate: https://tradingeconomics.com/united-states/interest-rate

For financial markets, the effect is balanced: liquidity support combines with warnings about structural inflation risks. For the technology sector, the rate cut has a dual impact. On the one hand, cheaper borrowing and lower mortgage rates indirectly support demand for digital goods and services. In addition, high-tech companies with long-term investment programs benefit from lower capital costs.

US Tech technical analysis

Inflationary risks tied to tariff-driven price increases may persist, limiting the scope for aggressive monetary easing. In the short term, the US Tech may deliver moderate growth thanks to easier financing conditions, but the sector’s high sensitivity to inflation expectations and geopolitical risks leaves room for correction.

US Tech technical analysis for 19 September 2025

The US Tech index broke above the previous resistance level at 24,425.0, with a new support line formed at 24,020.0. A new resistance level is yet to form. The uptrend will likely be medium-term, with the nearest upside target at 25,290.0.

The following scenarios are considered for the US Tech price forecast:

  • Pessimistic US Tech scenario: a breakout below the 24,020 support level could push the index to 22,985.0
  • Optimistic US Tech scenario: if the price consolidates above the previously breached resistance level at 24,425.0, the index could climb to 25,290

Summary

The US equity market received a clear support signal from the Federal Reserve. However, lingering uncertainty over the long-term inflation path and tariff policy implies that the US Tech rally will likely remain moderate and volatile. Investors are shifting focus towards companies with strong balance sheets and the ability to pass costs onto end consumers. The next upside target for the US Tech could be 25,290.0.

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investingLive Americas FX news wrap: Non-farm payrolls disappoint again

Posted on: Sep 06 2025

  • August US non-farm payrolls +22K vs +75K expected
  • Canada August employment change -65.5K vs +10.0K expected
  • Fed's Goolsbee: We're open to criticism on improving Fed decision making
  • Timiraos: Soft jobs report will make it easier for Fed to agree on 25 bps cut
  • Saudi Arabia wants OPEC+ to speed up next oil production boost
  • US Lutnick: US economic data will get better and better after staff changes

Markets:

  • Gold up $41 to $3586 -- fresh record high
  • WTI crude oil down $1.49 to $61.99
  • US 10-year yields down 10.2 bps to 4.07%
  • S&P 500 down 20 points to 6481
  • CHF leads, CAD lags

It was a tough day on the North American jobs front as both the US and (especially) Canada disappointed, solidifying the case for rate cuts later this month. Both currencies sank significantly on the data but not severely with the loonie slightly underperforming the dollar on the day.

The Market is now pricing in 47 bps in Canadian easing in the year ahead and 131 bps in the US. Most notably, Fed pricing suggests a 90% chance of a cut at each of the three remaining meetings this year and a slight chance of 50 bps this month.

Naturally, gold loved the dovish shift and continued higher to a fresh record.

The price action in equities was less straight-forward as the market initially cheered the possibility of more rate cuts only to turn lower on fears of a recession. Some late equity bids (once again) cushioned the blow and the main US indexes finished higher on the week.

This article was written by Adam Button at investinglive.com.