US stock market remains positive: Dow Jones near record high, S&P 500 reaches record - technology stocks drive rally

US stock market remains positive: Dow Jones near record high, S&P 500 reaches record - technology stocks drive rally

According to a report by www.t-online.de, the general mood on the US stock market remains positive. The Dow Jones Industrial fell 0.18 percent in early trading, but remained close to its record high. The S&P 500 set another record and the Nasdaq 100 also set another record.

The key drivers of the rally remain heavily weighted technology stocks that are benefiting from the hype surrounding artificial intelligence. The hopes of rapid cuts in key interest rates, which drove the stock markets towards the end of last year, have now been significantly dampened. The US Federal Reserve does not want to lower interest rates too early and thereby risk inflation rising again. A strong labor market can lead to higher wages and thus fuel inflation. At the same time, the recent generally good economic data fueled hopes that the Fed's sharp increases in key interest rates will bring inflation under control without strangling the economy.

These developments suggest that the US Federal Reserve will continue to pursue a restrictive monetary policy to bring inflation under control. In the long term, this could lead to higher interest rates and a dampening of the stock market. Companies with high levels of debt could be particularly affected by rising interest rates, which could reduce their profits. At the same time, investors could increasingly switch to bonds, as these become more attractive when interest rates rise. All in all, caution is advised as the environment on the stock markets could change in the near future.