U.S. technology stocks were lower as markets await the Federal Reserve, but selling is minimal.
NAS 100 – Daily Chart
The NAS 100 has hit some near-term resistance around 25,750 and is pausing ahead of the rate decision. A move above there opens up the all-time highs once again.
Investors are waiting for Fed Chair Jerome Powell and his fellow policymakers to conclude their meeting on Wednesday, at which the U.S. central bank is widely expected to cut its benchmark interest rate. Economists in recent weeks have pointed to the weaker jobs market as the key reason for further easing.
Stocks have stabilized in recent weeks on widespread expectations that the Fed will cut its key interest rate for the third time this year. The big question will be what kind of hints the Fed gives on the path of interest rates after Wednesday. The positioning of traders for 2026 is that the Fed will tone down expectations for further cuts. If that outlook changes to further rate cuts, then stocks could surge higher into year-end.
Inflation has been stuck above the Fed’s 2% target, and officials have been divided in their views on whether higher inflation or slower job growth is the bigger threat to the economy.
Nvidia and the broader tech market were boosted after U.S. President Donald Trump said he would allow the company to sell its H200 chip to “approved customers” in China.
“This would allow China to speed up its buildout of AI infrastructure and increase the likelihood of Chinese AI models matching, or possibly even overtaking, frontier U.S. models,” said Julian Evans-Pritchard at Capital Economics.
Trump said the Commerce Department was finalizing details for other chipmakers, such as AMD and Intel, also to sell their technologies abroad. That comes after the U.S. government took an equity stake in the latter.
Another big event for the market this week is earnings from fellow chipmaker Broadcom, which would boost the outlook for AI-related valuations if they are positive. Analysts are very bullish on the stock, and it could sour the mood if they fail to meet the lofty expectations.
