The US Tech index continued to rise following the Federal Reserve’s decision to cut interest rates. The forecast for US Tech for the coming week is positive.
US Tech forecast: key trading points
- Recent data: the US Federal Reserve cut the benchmark interest rate to 3.75% per annum
- Market impact: the data has a positive effect on the technology sector
US Tech fundamental analysis
The Federal Reserve’s decision to reduce the key interest rate to 3.75% (from 4.00%), fully in line with market expectations, creates a broadly supportive backdrop for US financial markets. Lower interest rates reduce the cost of borrowing across the economy, making credit cheaper for both companies and consumers. This supports economic activity and improves financial conditions for businesses. For equity markets, such decisions usually act as a positive catalyst. Lower rates increase the relative attractiveness of equities compared with bonds, as bond yields decline.
United States Fed Funds Interest Rate: https://tradingeconomics.com/united-states/interest-rate
In addition, companies gain greater flexibility to invest, as financing becomes less expensive. All of this encourages investor appetite for risk assets and improves overall market sentiment. The impact is particularly visible in the technology sector and the US Tech index. Technology companies are especially sensitive to interest-rate changes because their business models often rely on long-term investment horizons, and their valuations depend heavily on future cash flows. The lower the discount rate, the higher the present value of expected earnings, which supports share prices.
US Tech technical analysis
The rate cut to 3.75% supports the technology sector through several channels: it reduces borrowing costs, eases valuation pressure, and encourages capital inflows into high-growth segments. Together, these factors create favourable conditions for further gains in the US Tech index. From a technical perspective, the market reaction is likely to remain moderately positive. While investors largely priced in the decision in advance, confirmation of policy easing continues to support demand for technology stocks.
US Tech technical analysis for 12 December 2025
US Tech continues to trade within a clear upward trend. The nearest resistance has formed at 25,835.0, while the support level has shifted higher to 25,445.0. The next upside target stands at 26,265.0.
Forecast scenarios for US Tech:
- Pessimistic scenario: if the price breaks below support at 25,445.0, the index may fall towards 24,610.0
- Optimistic scenario: if the price breaks above resistance at 25,835.0, the index may rise to 26,265.0
Summary
Overall, the Federal Reserve’s rate cut creates a supportive environment for the US equity market, particularly for the technology sector. The US Tech index receives a strong growth impulse, although further dynamics will depend on upcoming Fed commentary and expectations regarding the future rate path. From a technical standpoint, the upward trend appears medium-term in nature, with no clear signals of an imminent reversal. The nearest upside target remains 26,265.0.
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