US stock markets experienced a significant surge recently, with both NASDAQ and S&P 500 setting new records and achieving gains of over 1%. This positive momentum was largely fueled by Federal Reserve Chair Jerome Powell’s remarks during a two-day semiannual testimony. While the forex markets remained relatively stable, investors reacted favorably to Powell’s comments.
Although Powell did not provide specific details about when the Fed might implement its first rate cut, he did acknowledge that the risks to the economy are now more evenly balanced. He also highlighted that elevated inflation is not the sole concern, leading to the belief that the Fed would act promptly to adjust its policies if there are indications of economic or job market cooling.
From a technical standpoint, the near-term outlook for NASDAQ appears bullish as long as the support at 18034.99 holds after turning from resistance. The next target is set at 19217.78, which is the 100% projection of the previous range. Alternatively, NASDAQ could be aiming for a long-term target of 19669.62 or even the psychological level of 20,000.
In conclusion, as long as NASDAQ remains above the 18,000 mark, there is a strong possibility of a rapid ascent towards the 20,000 level. This optimistic outlook is supported by Powell’s comments and the overall market sentiment, indicating a positive trajectory for US stocks in the near future.
