Nasdaq Composite extends rebound as traders await Powell’s remarks on rate cuts

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Nasdaq Composite extends rebound

Highlights

-Nasdaq bounces over 0.9% today on Fibonacci level and 20-day EMA support

-Geopolitical relief expectations drive rebound from three-week low

-Nasdaq RSI keeps short-term bias tilted to the bullish side

The rebound began Monday after the index slipped to $19,334, a three-week low. However, the decline found strong technical support at a confluence of the 0.786 Fibonacci retracement level and the 20-day exponential moving average. This dual support helped reverse the downward momentum and triggered a recovery that lifted the index above $19,640, securing a gain of more than 1% for the day.

NASDAQ price dynamics (May - June 2025). Source: TradingView

Geopolitical developments also contributed to the improving sentiment. News of a U.S.-brokered ceasefire agreement accepted by both Iran and Israel helped ease concerns over an extended conflict in the region. That relief coincided with bullish momentum across risk assets, including U.S. tech stocks that dominate the Nasdaq index.

Nasdaq RSI readings suggests short-term momentum remains positive

Despite the strong bounce, the Nasdaq still trades below the critical $19,800 resistance zone. Traders are now focused on Powell’s testimony before the House Financial Services Committee, scheduled to begin during the North American session. Powell is expected to comment on whether current inflation levels and economic conditions justify rate adjustments in the near term.

Market speculation has been growing around the possibility of rate cuts this year. Although the Fed left interest rates unchanged in its latest meeting, repeated calls from US political leaders to lower rates, combined with stable inflation data, have raised expectations for policy easing. If Powell indicates that cuts are likely later this year, the Nasdaq may break above last week’s high near $19,730 and retest the $19,800 ceiling.

On the technical front, momentum continues to favor bulls. RSI readings on both the daily and 4-hour charts suggest that strength is still intact. As long as price stays above Monday’s low and sentiment remains stable, the short-term path may stay tilted to the upside. However, a lack of policy clarity from Powell could keep the index range-bound and vulnerable to external headlines, especially those tied to global tensions.

Nasdaq bounced from the $19388 support after last week's dip failed to break structure. Market awaited PMI data as geopolitical tension held price below the $19800 resistance.

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