Nasdaq Composite extends gains into 3rd day ahead of U.S. jobless claims release

Traders Union
All News
Financial News
Nasdaq Composite extends gains

All news

Top Stories

Editors' Picks

Crypto News

Financial News

Market Voices

Billionaires

Companies

Broker News

Regulators News

Sholanke Dele

04.09.2025

Nasdaq Composite extends gains into 3rd day ahead of U.S. jobless claims release — Nasdaq recovery builds on megacap strength

The Nasdaq Composite Index has staged a sharp turnaround in early September after rising yields on longer-dated Treasuries had initially pressured equities, reflecting concerns over borrowing costs and their drag on growth-oriented sectors.

However, from Tuesday onward, the technology-heavy benchmark found support and shifted into recovery mode, driven by heavyweight stocks and favorable court developments.

- Nasdaq rebounds above 20-day EMA after Alphabet court ruling boosts sentiment.

- Salesforce declines 6.6% as weak AI revenue forecast pressures large-cap tech.

- Nasdaq recovery challenges September weakness while traders await key U.S. macro data.

The index rebounded strongly from Tuesday’s low near the Fibonacci 61.8% retracement level at 21,030. This technical zone acted as a floor, sparking a rally that carried prices back above the 20-day EMA. The move converted what had been early-week losses into gains, both on a week-to-date and month-to-date basis. By Wednesday, the Nasdaq climbed to a session high near 21,550 before settling at 21,500, comfortably above the previous week and month’s closing level of 21,455. That close cemented a technical recovery and underscored the index’s resilience in the face of higher yields.

Nasdaq price dynamic (June - Sept 2025). Source: Tradingview

The recovery has been powered in large part by surging megacap names. Alphabet and Apple shares rallied after U.S. District Judge Amit Mehta’s ruling in the long-running antitrust case against Google. The judge decided the company would not be forced to sell its Chrome browser and could continue paying Apple to maintain the default search status on its devices. The decision removed a structural threat that had hung over Alphabet’s future, sparking a 9% surge in its stock and pulling the broader Nasdaq higher.

Nasdaq traders eye U.S. jobless claims and PMI data for fresh direction

As of Thursday’s premarket session, the index was already pointing higher by 0.25%, extending the rebound into what could become a third straight day of gains. This is particularly notable given that September is historically a seasonally weak month for Wall Street, and the ability to sustain strength challenges those tendencies. Still, investor focus is now shifting to incoming U.S. economic data that could sway sentiment.

Salesforce shares provided a contrasting story, falling 6.6% in premarket trading after the company’s revenue forecast fell short of expectations. The guidance highlighted challenges in monetizing its AI agent platform and served as a reminder that not all large tech names are enjoying the same tailwinds as Alphabet or Apple.

The next test for the Nasdaq will be today’s U.S. macro releases. A higher-than-forecast jobless claims figure would suggest softness in the labor market, which could ease pressure on the Federal Reserve to maintain restrictive policy. A weaker ISM services PMI would also point to slowing economic momentum. Both outcomes would likely weigh on the dollar and Treasury yields, which in turn would support further gains in equities. In such a scenario, the Nasdaq could extend its recovery and build on this week’s technical breakout above the key 20-day exponential moving average.

Nasdaq recovers from seven-day low after Alphabet shares rally on legal ruling. The index tests 21,450 resistance as megacap gains offset Treasury yield pressure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.