📈US100 extends gains after the rollover, one step closer to 20,000 points

Futures on Nasdaq 100 (US100) gain today almost 3% (almost a half part of this move is rollover), reaching 20,000 points. Stock market is driven by yesterday 50 bps rate cuts, dovish Powell remarks and general optimism about aggressive Fed rate cuts cycle, while economy is still strong. Fed sees interest rates at 3.4% level at the end of 2025 year vs 5% now.

• The 'little euphoria' on Wall Street is now largely driven by rebound of semiconductor stocks, which may be huge 'soft landing' beneficiaries, with strong AI demand and possibly higher 'cyclical' demand for semis, used not only in data centers, but also industrial sector
• Qualcomm, Intel and AMD shars are almost 3% higher, with Nvidia (NVDA.US) rising more than 3% in pre-market. Investors await for today US jobless claims and Philly Fed at 1:30 PM BST and leading indicator Conference Boards index scheduled at 3 PM BST. As for now US30 andUS500 gains almost 2%, while US2000 rallies 3.5%, with lover interest rates supporting US low and mid-cap stocks sentiments

However, Fed decision came in 'supportive' for Wall Street and signals general Fed optimism about balanace between inflation trend and US economy, markets will be extremely very sensitive to any 'recessionary' and inflation readings, especially if those show that Fed may be wrong (with cutting rates to late or too much for the first meeting, especially if further CPI / PCE numbers will be higher, than anticipated). We can expect that Wall Street attention will now again shift to inflation data.

Source: xStation5