Nasdaq Composite eyes new all-time high as tech earnings overshadow Fed caution

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Nasdaq Composite eyes new all-time high

Highlights

-Nasdaq dips after Powell speech but rebounds from 20 EMA and 50% Fibonacci support

-Meta and Microsoft surge in premarket boost Nasdaq outlook toward new all-time highs

-Nasdaq rally to gain momentum as earnings drive fresh conviction across tech

The Nasdaq index had initially climbed to an intraday high of 21,230 before retreating sharply toward a four-day low at 21,020 following Powell’s remarks. That decline was arrested at a confluence of technical supports: the 20 EMA on the 4-hour chart and the 50% Fibonacci retracement level. The support zone triggered a recovery that helped the index close the day slightly positive, ending the session up 0.15%.

Nasdaq price dynamic (July 2025). Source: Tradingview

Thursday’s market tone is more optimistic, led by substantial premarket gains in tech heavyweights. Meta Platforms jumped 11.5% after forecasting Q3 revenue well above estimates, crediting AI enhancements for driving growth in its advertising segment. Microsoft also impressed investors by projecting a record $30 billion in capital spending for the current quarter, while reporting stronger-than-expected Azure revenue. Its stock is up 8.3% in premarket trading and is now approaching a $4 trillion valuation.

Nasdaq tech boost today led by Microsoft’s and Meta’s Q3 revenue

Additional support is coming from Amazon and Nvidia, which rose 3.2% and 1.6% respectively in early trading. The collective performance of these major names is setting the tone for the Nasdaq’s next move. Following five sessions of declining volume, today's expected surge in buying activity signals renewed conviction behind the tech-led rally. Traders now anticipate a session characterised by stronger follow-through and broader participation.

Despite the index trading near overbought levels on the daily RSI, the anticipated rally is being treated as an extension of the broader bullish trend rather than an exhaustion move. Momentum remains constructive, and price action continues to respect key support zones. The presence of fundamental catalysts from earnings helps offset short-term technical risks.

The Nasdaq Composite last printed a record high at 21,305 on Tuesday. As of the European session today, the index is positioned to break above that peak and potentially reach the 21,400 level. While the Fed’s restrictive stance may limit future upside in the broader market, the tech sector’s strong performance has created a buffer. Investors now turn to the month-end close for confirmation that the bullish trend is still intact.

Nasdaq Composite dropped as traders booked profits ahead of Powell's upcoming rate guidance. The Nasdaq reversed from 21,306 as it tested key Fibonacci support.

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