US Tech forecast: the index declines within a short-term correction
The US Tech index is correcting after reaching a new all-time high. The US Tech forecast for next week remains positive.
US Tech forecast: key trading points
- Recent data: US initial jobless claims for last week totalled 218 thousand
- Market impact: for the technology sector, this result is mostly positive
US Tech fundamental analysis
The latest US initial jobless claims fell to 218 thousand, coming in above expectations of 233 thousand and well below the previous reading of 232 thousand. This dynamic signals resilience in the labour market, indicating that the economy continues to create jobs despite slowing global activity. For investors, it serves as a sign that the fundamentals of corporate earnings remain strong, as household demand is supported by stable employment.
US Initial Jobless Claims: https://www.investing.com/economic-calendar/initial-jobless-claims-294At the same time, a strong labour market may curb expectations of a rapid easing of monetary policy by the Federal Reserve, as wage-driven inflationary pressure could persist. For the technology sector, represented in the US Tech index, the effect is mixed. On the one hand, a stable labour market supports consumer demand for digital services, devices, and IT solutions, which is positive for companies in the sector.
US Tech technical analysis
On the other hand, stronger employment data reduces the likelihood of an imminent rate cut, and low rates play a key role in sustaining high valuations of growth stocks. While this may limit short-term price gains, it is unlikely to significantly affect long-term trends.
US Tech technical analysis for 26 September 2025The US Tech index broke above the previous resistance level at 24,425.0, with a new support line at 24,020.0 and a new resistance level at 24,805.0. The uptrend will likely be medium-term, with the nearest upside target at 25,380.0.
The following scenarios are considered for the US Tech price forecast:
- Pessimistic US Tech scenario: a breakout below the 24,020.0 support level could send the index to 22,985.0
- Optimistic US Tech scenario: a breakout above the 24,805.0 resistance level could drive the index up to 25,380.0
Summary
The overall reaction for the US Tech index will likely be moderately subdued: positive signals of economic resilience will be offset by persistent expectations of a cautious Federal Reserve stance on easing policy. Thus, the data creates a neutral-to-positive background where long-term prospects remain favourable, while short-term dynamics are limited. The next upside target may be the 25,380.0 level.
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