📈US100 gains over 2.0%❗

🚀Tech stocks surge as Fed, Meta quarterly results boost sentiment

Technology-heavy bourses continue to move higher on Thursday, extending a Fed-induced rally, with the Nasdaq 100 and the S&P 500 advancing 2.5% and 0.9%, respectively, boosted by upbeat results from Facebook parent Meta Platforms. The social media giant shares skyrocketed nearly 20%, reported upbeat revenue figures and announced a $40 billion stock buyback. Bank of America upgraded tech giant, saying its new efficiency mentality positions stock for more than 40% upside. Meanwhile the blue-chip Dow fell more than 0.5% as markets reassessed the latest FED decision and monetary policy outlook. Yesterday the US central bank decided to slow down the pace of its rate hikes by delivering a modest 25 bps hike, while Powell said that the “disinflationary process has started.”  The Fed Chair pointed out that it is “certainly possible” that the benchmark interest rate will be kept below 5% and that it can get inflation back down to 2% without significant economic damage. Still, the central bank signaled more rate increases ahead, but Powell’s remarks ignited hopes that this tightening cycle may be nearing its end. 

From technical point of view, US100 bounced off major support at 12,000 pts, which coincides with 200 SMA (red line) on Tuesday and upward move gained steam after FED decision and Meta quarterly results. If current sentiment prevails, upward move may accelerate towards key resistance at 13000 pts, which is marked with upper limit of the 1:1 structure, 38.2% Fibonacci retracement of the upward wave launched at the beginning of pandemic. Break above this hurdle, would be a sign of potential reversal of the main bearish trend. Source: xStation5