The Nasdaq 100 on the way to an all-time high: How the unexpectedly dovish signals from the US Federal Reserve could affect the stock markets.

The Nasdaq 100 on the way to an all-time high: How the unexpectedly dovish signals from the US Federal Reserve could affect the stock markets.

According to a report from finanzmarktwelt.de, the prospect of a Fed interest rate shift in the new year has already brought the Dow Jones to a new all-time high and the Nasdaq 100 could follow suit. US stock markets continue their rally after the Fed was surprisingly dovish and signaled multiple interest rate cuts for 2024. This led to an overheated rally on Wall Street.

The possibility of a new all-time high for the Nasdaq 100 could increase the appeal of risky tech stocks due to the sharp fall in U.S. yields. Nevertheless, the great fall of the Witches' Sabbath is imminent, which could lead to highly volatile price movements and possibly a trend reversal.

The Nasdaq 100 Future is already indicating that a new all-time high could be reached. However, there is a risk of a false breakout that could lead to an interim correction. Technical indicators are at the ready and sentiment is extremely bullish, pointing to pullback potential in the Nasdaq, S&P 500 and Dow Jones.

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As finanzmarktwelt.de reports, the current developments on the US stock markets could reflect the contradictory effects of the Fed's planned interest rate shift on the markets and consumers.