Nasdaq Composite trades lower with focus on U.S. inflation and earnings reports
Nasdaq hit new record at 20,837
The Nasdaq Composite Index extended its upward trajectory on Tuesday, breaking above a four-day consolidation range to post a new all-time high at 20,837.
This marked a 0.95% gain from the session open and reflected strong investor appetite despite persistent inflation concerns triggered by U.S. trade policies. The rally was initially supported by a sharp rise in Nvidia shares following the company’s announcement to resume sales of its H20 AI chips to China. Banking stocks also lent support as JPMorgan Chase and Citigroup posted earnings that exceeded market expectations.
- Nasdaq hit new record at 20,837 before fading as chip sector weighed on momentum
- Nasdaq opened lower as traders watch PPI data and key bank earnings
- 20,655 now acts as key support, with inflation pressures threatening to reverse recent gains
However, the upward momentum faded later in the North American session. Sentiment shifted following a warning from Dutch chip equipment maker ASML, which flagged that U.S. tariff uncertainty may impact its 2026 growth outlook. This statement weighed on the broader semiconductor sector and pulled the Nasdaq lower, erasing more than half of its intraday gains.
NASDAQ price dynamics (May - July 2025). Source: TradingView
Strong CPI data released earlier in the week added pressure by reinforcing expectations that inflation could persist, dampening hopes of a near-term policy shift by the Federal Reserve. The decline in the index found support at the 20-period EMA near 20,680, helping to contain the damage for the day.
Nasdaq faces inflation headwinds as pre-market turns cautious before PPI print
On Wednesday, July 16, the Nasdaq Composite opened slightly lower, showing signs of hesitation as investors weigh the potential impact of U.S. tariffs and await the June Producer Price Index report. Pre-market sentiment reflects a cautious tone, driven by uncertainty around inflation and upcoming corporate earnings from key financial institutions, including Goldman Sachs, Morgan Stanley, and Bank of America.
From a technical perspective, the previous resistance at 20,655, which marked the top of the recent consolidation zone, has now turned into a key support. The ability of this level to hold will depend largely on the reaction to today's PPI report and the outcome of the financial sector earnings. A break below 20,655 could push the index back toward the week’s opening levels, potentially wiping out the gains recorded earlier and turning the week into negative territory.
For now, the Nasdaq continues to trade near record territory but faces increasing headwinds from inflation pressures and geopolitical trade friction. The market is positioned delicately, awaiting fresh catalysts that will determine whether this consolidation turns into a renewed breakout or a broader pullback.
Nasdaq held above 20480 support and stayed in a tight range below its all-time high. Investors stayed on the sidelines last week as they waited for earnings and CPI data.
