Stock market rise: analysis shows warning signs

Stock market rise: analysis shows warning signs

According to a report by www.n-tv.de,

The US Federal Reserve is signaling interest rate cuts next year, which has led to a further rise in the Dow Jones Industrial Average. The index temporarily climbed just below the 37,300 point mark. However, experts warn of a possible overheating of the market and an impending correction.

Investors' euphoria following the Fed's interest rate decision is slowly waning and the risk of a setback on the stock market is increasing. One indicator of this is the “Fear & Greed Index” from CNN Business, which is in the “Greed Sector” and is about to enter the “Extreme Greed” market state. This suggests that Wall Street is overheating. Analysts warn of an impending correction if the indices continue to rise.

On the raw materials market, oil prices rose, while the dollar index fell and the euro rose accordingly. In terms of individual stocks, Moderna's shares rose significantly after positive study results, while other companies such as Adobe made disappointing forecasts.

The shares of the biotech company Moderna jumped 9.2 percent after positive study results on a cancer vaccination. Tesla shares also rose significantly. An upgrade by analysts boosted shares of Foot Locker, while a stake increase by Warren Buffett's investment firm had a positive impact on shares of US oil company Occidental Petroleum.

Overall, signs point to overheated market sentiment and a correction could be imminent. It is important to monitor developments closely and make appropriate adjustments to portfolios in order to be prepared for possible turbulence.