Nasdaq Composite jumps 230 points as dip buying lifts index off eight-day low

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Nasdaq futures rise over 230 points

Highlights

Nasdaq rebounds 230 points premarket after Wednesday’s selloff hit 23,300 low
Price reclaims wedge structure and clears 4h 50 and 100 EMAs near 23,540
RSI resets to neutral zone as buyers eye 23,800 as next possible target

Wednesday’s decline was ignited by remarks from President Trump, who proposed that credit card companies charging more than 10% interest should be deemed unlawful. That statement triggered sharp losses across the financial sector. Shares of JPMorgan, Visa, and Mastercard all dropped, as several major U.S. banks cautioned that such a cap could restrict lending access for consumers and small businesses.

Nasdaq Composite price chart (Jan 2026). Source: Tradingview

The weakness quickly extended across the Nasdaq’s tech-heavy landscape. Traders reduced exposure to the Magnificent 7 group. Meta and Amazon led the pullback, each falling over 2.4%. Nvidia also edged lower by 1.4% following news that the Trump administration had tightened export restrictions on its H200 AI chips to China. The risk-off mood weighed broadly on mega-cap growth names.

Nasdaq recovery holds 20-day EMA after selloff triggered by sector and policy concerns

Despite the drawdown, the Nasdaq Composite managed to recover from session lows, closing at 23,470, just above its 20-day EMA. That late-session rebound hinted at strong dip-buying appetite and has now extended into today’s premarket activity. The futures bounce has lifted price back into the wedge pattern and above the 4-hour 50 EMA at 23,430 and the 4-hour 20 EMA at 23,540.Short-term RSI has bounced to the neutral 50 level, which often acts as a decision zone for momentum traders. Price now sits at a technical inflection point. Sustaining above these moving averages would solidify buyer intent and open the door for a retest of the early week high near 23,800.

Short-term RSI reset and reclaimed EMAs open door for 23,800 retest

If buyers manage to hold ground during today’s cash session, the index could gain traction toward the upper bound of the wedge structure. A break above that level may energise bulls further and extend the move toward 24,050 in the near term.

On the other hand, failure to hold current gains could force price into consolidation just above the 4-hour 20 EMA, potentially trapping the Nasdaq Composite in a range between 23,540 and 23,700 before the next directional cue.

In recent analysis, we discussed how the Nasdaq Composite fell 0.75% premarket, losing 190 points after failing to hold post-CPI gains. Trump’s credit cap proposal dragged Visa and Mastercard lower, weighing on Nasdaq-linked financial stocks.

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