The US Tech index has once again reached a new all-time high. The outlook for next week remains positive.
US Tech forecast: key trading points
- Recent data: US ISM manufacturing prices for September came in at 61.9
- Market impact: moderately positive for the technology sector
US Tech fundamental analysis
The US ISM manufacturing prices index stood at 61.9 in October, lower than the forecast of 62.7 and significantly below the previous level of 63.7. A lower reading indicates a slowdown in price growth in the industrial sector. For investors, this is a signal that producer-driven inflationary pressure may be easing. Such a result is typically seen as positive for the stock market, as it reduces the likelihood that the Federal Reserve will be forced into more aggressive monetary tightening than expected. In the short term, this can support the growth of US stocks.
US ISM Manufacturing Prices Paid: https://tradingeconomics.com/united-states/ism-manufacturing-pricesThe technology sector is especially sensitive to interest rate changes since higher borrowing costs reduce the future earnings of fast-growing companies. A decline in the ISM prices index points to reduced inflationary pressure, which may soften expectations for further Federal Reserve rate hikes. For the US Tech index, this acts as a supportive factor, with lower inflation risks making tech stocks more attractive to investors.
US Tech technical analysis
The lower-than-expected reading represents a moderately positive signal for the US stock market as a whole and especially for the technology sector, as it lowers inflationary pressure and increases the likelihood of a softer monetary policy path. Additional clarity may come from today’s US labour market data.
US Tech technical analysis for 3 October 2025The US Tech index broke above the previous resistance level at 24,805.0, with a new support line at 24,195.0. A new resistance level is yet to form. The uptrend will likely be medium-term, with the nearest upside target at 25,380.0.
The following scenarios are considered for the US Tech price forecast:
- Pessimistic US Tech scenario: a breakout below the 24,195.0 support level could push the index to 22,985.0
- Optimistic US Tech scenario: a breakout above the 24,805.0 resistance level could propel the index to 25,380.0
Summary
The US Tech index continues to reach new all-time highs. Current producer price data gives the Fed grounds to continue a more accommodative monetary policy. This supports the equity market overall and the technology sector in particular. Labour market data, due later today, could bring adjustments. The next upside target for the index could be 25,380.0.
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