Nasdaq Composite sees 33% June gain as traders weigh Powell testimony
Nasdaq closes quarter up 33% from April low, driven by tariff pause and trade optimism
The Nasdaq Composite Index [IXIC] has just closed out one of its strongest quarters in recent years, climbing 33% between its April low and the end of June.
A significant catalyst was the tariff pause announcement in early April by President Trump, which triggered aggressive dip buying across the board.
Highlights
-Nasdaq closes quarter up 33% from April low, fueled by tariff pause and trade optimism
-RSI into overbought zone raises pullback risk in early July
-Powell's testimony today could drive fresh momentum or spark correction
From a technical lens, the index staged a sustained 6-day bullish run leading up to quarter-end, delivering a 6.6% gain for the month of June. This uptrend was likely amplified by portfolio managers engaging in window dressing activity to polish their quarterly performance. The recent resumption of trade talks between the U.S. and Canada provided additional fuel, pushing the index to a fresh record high of $20,420 on Monday, June 30.
NASDAQ price dynamics (May- July 2025). Source: TradingView
The move elevated the index into overbought territory on both the 4-hour and daily Relative Strength Index. While this is not an outright sell signal, it suggests a near-term pullback is plausible, especially as the new month begins and some investors consider profit-taking.
Nasdaq RSI climbs into overbought territory, setting the stage for early July pullback
Support now aligns near the previous all-time high of $20,200, a level that could act as a springboard if sentiment stays constructive. The magnitude of the recent move and the positioning of technical indicators make this support zone an important level to watch should any retracement develop.
Looking forward, macroeconomic drivers remain front and centre. Hopes around interest rate cuts continue to build as economic uncertainty lingers. Investors are also keeping an eye on any progress in trade negotiations. Both factors have shaped recent bullish flows and will continue to sway market direction.
All attention now turns to Fed Chair Powell’s testimony later today in the North American session. Any shift in tone regarding rate expectations could prompt sharp reactions across U.S. markets, including the Nasdaq. If Powell hints at easing, the index could extend its rally. On the other hand, hawkish rhetoric may invite a short-term correction, especially given the current overbought readings.
The Nasdaq broke past worries on tariffs, inflation and tensions as tech and crypto stocks soared. RSI had moved into the overbought zone above 70 as the price pushed to record highs.
