Nasdaq Composite hits record peak on low volume amid tariff and earnings optimism
Nasdaq composite hit new all-time high at $20,620
The Nasdaq Composite Index extended its rally last week, reaching a fresh all-time high of $20,620 on July 3, just a day before the U.S. Independence Day holiday.
The surge followed a break above the previous record at $20,420, marking yet another bullish milestone for the tech-heavy index. Although trading volume on the day was lower than the average of the past two months, the market move suggested investors were reacting more to policy headlines.
- Nasdaq composite hit new all-time high at $20,620 last week
- Trade deal optimism and strong earnings fuel renewed risk appetite despite low volume
- Technical charts show overbought signals, but price action still points higher
A major driver of this latest leg higher was renewed optimism over trade policy. Investors were closely watching Washington ahead of the July 9 expiration of a temporary suspension on punitive import tariffs. That anxiety eased after President Trump announced a deal with Vietnam, while also hinting at forthcoming deals with India and Japan. These developments helped shift sentiment from trade-related anxiety to relief buying.
NASDAQ price dynamics (May- July 2025). Source: TradingView
The White House has now floated August 1 as the next significant date, suggesting that countries failing to reach trade agreements by then could face stiffer import penalties. While this adds a layer of uncertainty, the market has, for now, responded to the optimism surrounding ongoing negotiations.
Nasdaq sentiment remains strong as U.S. economic data beat forecasts
Beneath the surface, corporate earnings and broader economic resilience have been doing the heavy lifting. Many companies have reported better-than-expected results, and the U.S. economy has continued to perform despite sweeping policy changes. This strength has helped justify the Nasdaq’s climb, reinforcing investor appetite for risk.
Technically, the chart signals that the index is trading in overbought conditions across all timeframes. Still, price action shows no immediate sign of reversal. The former high at $20,420 now acts as short-term support, coinciding neatly with the 20 EMA on the 1-hour chart. Should there be a deeper pullback, additional support lies at $20,200, where the 50 EMA provides further structure.
So far this month, the Nasdaq is up 1.5% month to date. If the bullish momentum holds, traders are eyeing the $21,000 mark as the next price target. As long as earnings support the outlook and trade uncertainty stays at bay, the path of least resistance continues to point higher.
The tariff pause announcement boosted aggressive buying and lifted the Nasdaq 33% by June. RSI moved into the overbought zone and signalled a possible pullback in July.
