Nasdaq Composite hits record high at 21,280 ahead of Fed policy decision

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Nasdaq Composite hits record high

Highlights

-Nasdaq dips slightly today after gaining 1% last week and printing a fresh high at 21,160

-Overbought RSI signals upside exhaustion, but price holds above key support at 21,075

-Upcoming tech earnings and U.S.-EU trade deal could decide whether Nasdaq breaks higher

The strength of last week’s performance was anchored by strong quarterly earnings from Alphabet and optimism surrounding multiple new U.S. trade agreements. Alphabet’s second-quarter results were well received, and trade deals with Japan, Indonesia, and the Philippines added confidence to the broader economic outlook. Together, these catalysts pushed the Nasdaq Composite into uncharted territory above the psychological 21,000 mark.

Nasdaq price dynamic (July 2025). Source: Tradingview

As the new week begins, attention turns to two key developments: the recently announced U.S.-EU trade agreement and a heavy lineup of earnings from the remaining Magnificent Seven tech stocks. The trade deal between the United States and the European Union, which includes a uniform 15% tariff arrangement, has been viewed as a resolution to months of deadlock. This improved sentiment could add fuel to Nasdaq gains if accompanied by strong tech earnings.

Nasdaq trades above 21,100 today as momentum holds after six-week rally

Meta is scheduled to report on Wednesday after market close, with projections pointing to $44.8 billion in revenue and $5.87 in earnings per share. Microsoft will report around the same time, expected to deliver $73.8 billion in revenue and $3.38 in EPS. Amazon and Apple follow on Thursday, rounding out a decisive week for the index.

Technically, the Nasdaq Composite enters the week in an overbought state, as reflected in both daily and 4-hour RSI levels. However, the structure remains intact, and pullbacks are likely to be treated as opportunities unless major support levels fail. The 21,075 level, which was an intraday high last week, now acts as near term support. It is backed by the 20 EMA on the 1-hour chart. Should that level break, the Fibonacci 50% retracement zone offers a secondary support, aligned with the 50 EMA on the 1-hour chart.

For Monday’s session, bullish traders will likely set their sights on a move above last week’s high at 21,160, especially if trade-related headlines and corporate earnings meet or exceed expectations. Momentum continues to favor the upside as long as price holds above the recent breakout zone.

Nasdaq Composite rose after Trump denied the Powell firing rumor. Nasdaq Composite bounced near the 4-hour 20 EMA and closed at a new high of 20,730.

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