Wall Street Update: Tech Sector and Interest Rate Cut Hopes
The US stock markets showed a mixed picture on Thursday, April 24, 2025, with a focus on the strong tech sector, while interest rate cut expectations shaped investor sentiment.
Market Development
- Tech Sector: The Nasdaq 100 benefited from ongoing demand for technology stocks, with hopes for interest rate cuts gaining additional momentum from statements by Fed officials like Christopher Waller.
- Overall Market: Despite the tech rally, early trading indicators pointed to slight losses – the Dow Jones Industrial was estimated to be down by 0.4% (39,445 points), while Nasdaq 100 was expected to decrease by 0.2% to 18,650 points.
Drivers of Recovery
- Fed Signals: Comments regarding potential easing of monetary policy fueled speculation about imminent interest rate decisions.
- Trade Conflict Relaxation: The previous recovery (up to +7% in Nasdaq until Wednesday) was partly attributed to hopes for de-escalation in trade tensions between the US and China.
Counteracting Factors
- Economic Uncertainty: Companies like American Airlines retracted their annual forecasts due to unclear economic prospects.
- Technical Resistances: Neither the Dow nor the Nasdaq managed to stay consistently above the critical 21-day average – an indicator of ongoing volatility.
The market remains in a tension between short-term recovery and structural risks such as geopolitical tensions or inflation data.