US Tech forecast: the index continues its correction

The US Tech index continues to correct, but the trend remains upward. The US Tech forecast for next week is positive.

US Tech forecast: key takeaways

• Recent data: US GDP grew by 2.1% in Q1 2026
• Market impact: the current data have a negative implication for the technology sector

US Tech fundamental analysis

According to the release, US GDP for Q1 2026 was revised upwards to 2.1% annualised, compared with expectations of 1.6% and the previous reading of 0.5%. At first glance, this represents a positive signal for the stock market: the US economy is growing faster than expected, the risk of a sharp slowdown is decreasing, and corporate earnings are receiving a more stable macroeconomic foundation. However, the market reaction may not be unequivocally positive, as strong GDP simultaneously reduces the likelihood of rapid Fed policy easing. For equities, especially the technology sector, this creates an important balance between expectations of higher earnings and the risk of persistently elevated interest rates.

For the US Tech index, the news may be moderately positive overall, although with clear limitations. The stronger-than-expected GDP reading confirms that the US economy remains resilient, meaning demand for cloud services, software, semiconductors, data centre equipment, and artificial intelligence-related solutions may remain high. This is especially important for the largest technology companies, whose valuations depend heavily on expectations of future revenue growth.

US Tech technical analysis

For the broader US equity market, the publication is more likely to reduce recession concerns. Higher GDP means the corporate sector is operating in stronger demand conditions than previously assumed. This may support the broader index market, especially if investors conclude that the economy is moving towards a soft landing rather than a sharp cooling.

The US Tech index continues to correct, but a sideways trend may form. The resistance level formed around 30,690.0 points. The nearest support stands at 28,415.0. The current uptrend may transform into a sideways movement. If growth continues to develop, the next target may be the 31,895.0-point area.

For the US Tech index price forecast, the following scenarios can be highlighted:

• Pessimistic US Tech forecast: if quotes break below the support level at 28,415.0, they may fall to 27,525.0
• Optimistic US Tech forecast: if quotes break above the resistance level at 30,690.0, they may rise to 31,895.0

Summary

Overall, the publication looks rather positive for US Tech and the US equity market, but it does not represent an unconditional signal for strong growth. The main positive factor is that the US economy proved stronger than expected. The main risk is that strong GDP may delay expectations of rate cuts, while weak consumer spending shows that domestic demand is not as strong as the headline figure suggests. Therefore, the baseline scenario is moderate support for equities, especially technology and investment-oriented companies, but with increased market sensitivity to further inflation and employment data, as well as Fed comments. The nearest upside target may be 31,895.0.

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