Optimism on Wall Street: US Markets Continue Upward Trend

Optimism is spreading on Wall Street: The Dow Jones Industrial and the Nasdaq 100 indicate sustained growth ever since the Federal Reserve announced its monetary policy decision to keep the benchmark interest rate steady. Investors are now looking forward with hope to the remaining year, as speculations about three possible rate cuts provide an additional boost. With the Dow Jones gaining momentum, its hunt for records having started even before this, the tech-heavy Nasdaq index now also appears to be on a trajectory for success. The performance of tech stocks, known for their high investment requirements and which could benefit from low interest rates, is particularly noteworthy. Market observers from the brokerage IG are already forecasting a 0.3 percent increase for the Dow Jones Industrial, while the Nasdaq 100 is expected to gain a full 1 percent. The hope for a change in the Federal Reserve's interest rate policy in June greatly reinforces investor confidence, with a realistic perspective for a rate cut by mid-year. The outlook for yields is particularly improving for companies with capital-intensive business models. Another industry news catching investors' attention is the surprising stock rally of Micron Technology. After an exceedingly positive quarterly outlook, shares of the U.S. semiconductor manufacturer surged in pre-market trading, fueled by strong demand in the area of Artificial Intelligence. These positive signals also impacted other chip companies: Western Digital and Seagate experienced a considerable upswing, while industry suppliers like Applied Materials could benefit from the newly set expectations. Broadcom also stands out with a significant price increase thanks to positive analyst ratings and the potential offered by AI technologies. An investor event led to a consolidation of this assumption, making Broadcom, along with Nvidia, one of the most promising players in this field. Another highlight of the day is the initial public offering (IPO) of the social network Reddit. Experts are watching this much-anticipated IPO, which has already seen brisk demand at the upper limit of the issue price. However, there are skeptical voices regarding the profitability of Reddit, as the company has yet to succeed in monetizing its extensive user base.