Nasdaq Composite nears ATH as tech rally fuels biggest weekly gain since April
Nasdaq jumps over 3.8% this week
The Nasdaq Composite Index has recorded a powerful surge this week, gaining over 3.8% and marking its strongest weekly performance since April.
The rally has been fuelled by easing geopolitical concerns and renewed enthusiasm for artificial intelligence, driven by heavyweight tech stocks such as Microsoft and Nvidia. Both companies have posted significant gains this week, boosting overall sentiment and lifting the index closer to historic territory.
- Nasdaq jumps over 3.8% this week, led by Microsoft and Nvidia amid AI optimism
- The index breaks above $20,120 resistance and trades near record high of $20,200
- Daily RSI hits 70 while all eyes turn to PCE inflation data for confirmation of bullish trend
Thursday’s session saw the Nasdaq gain 1%, breaking above the key resistance zone at $20,120. This level had previously halted price advances in both January and February. The bullish momentum pushed the index as high as $20,187, just shy of the all-time high at $20,200 which was last recorded in December of the previous year.
NASDAQ price dynamics (April 2024 - June 2025). Source: TradingView
Investor optimism surrounding AI innovation and tech earnings has been the dominant driver of this week’s breakout. As of early Friday, June 27, the index is poised to break past its historical peak, supported by strong trend alignment and consistent buying pressure.
Nasdaq traders brace for PCE inflation data amid breakout above all-time high
Technical indicators also reflect this strength. The daily RSI has now reached the overbought threshold at 70, while hourly RSI readings continue to show bullish momentum. Although the overbought condition suggests the potential for a minor pullback, the broader trend direction remains upward. A short-term dip may retest the $20,120 level, which now acts as near-term support.
Looking ahead, a key catalyst looms. The U.S. Personal Consumption Expenditure (PCE) Price Index for May is set to be released later today. This is the Federal Reserve’s preferred inflation gauge and is expected to provide critical clues about the central bank’s rate path. Dovish expectations are growing, especially as President Donald Trump’s tariff policies begin to weigh on consumer prices.
If the PCE data aligns with market expectations, it could reinforce the bullish trend and help push the Nasdaq into new all-time high territory above $20,200. For now, the momentum built on AI optimism and supportive macro signals suggests that the path toward further upside remains intact.
Nasdaq broke above the $19,800 resistance as bullish momentum pushed the index to $19,950. The rally defied Powell’s hawkish tone, while RSI continued to rise.
