In January, the NASDAQ Composite stock index, which consists of shares of high-tech companies, rose by 11%, which was the best dynamics for this period since 2001. Then at the peak of the high-tech boom of the late 1990s-early 2000s Nasdaq grew by 12.2% in January, writes “Kommersant”.

Analysts believe the reason for such positive dynamics several factors – the slowdown in inflation, forecasts of a smaller than expected recession in the United States, as well as expectations that the Fed will begin to reduce the pace of interest rate increases – and this will be another sign of economic recovery.

“Fed rate expectations have been one of the main drivers of the positive momentum in the market,” MarketWatch quoted Melissa Brown, managing director at analyst firm Qontigo, as saying.If the Fed makes it clear they’re not going to do it, that would be a strong negative for the market. But if the Fed confirms the expectations of the market, it is unlikely that it will have a strong impact on the dynamics, because such expectations have already been played off.”

Fed rate expectations also caused positive dynamics of the S&P 500 index, which consists of shares of 500 public companies with the largest capitalization – in January, this index showed the best dynamics since 2019.