Nasdaq Composite extends record run near 22,200 ahead of Fed rate cut

Nasdaq Composite extends record run near 22,200 ahead of Fed rate cut
Nasdaq futures supported by AI-driven tech stocks

​The Nasdaq Composite Index extended its impressive run last Friday, setting both an intraday record high at 22,180 and a record close at 22,140. 

This marked the sixth straight session of record highs, an achievement supported by consistent increases in daily trading volume. The sustained rise in both price and participation reinforced the strength of the rally, helping the index secure a weekly gain of 1.3%. Such a combination of volume confirmation and higher closes reflects conviction from institutional and retail investors alike.

- Nasdaq extends record highs as rising volumes confirm strong investor conviction.

- Bond yields dip below 4% boosting Nasdaq valuation appeal for growth stocks.

- Nasdaq finds support at 20 EMA as traders await Fed outcome.

The momentum continues to show in early trading this week. On Monday, September 15, Nasdaq futures edged higher by 0.2% in premarket action. The lift is driven by revived optimism around artificial intelligence, as well as renewed expectations for interest rate cuts. The AI theme has proven to be a persistent catalyst, attracting investor flows into large-cap technology stocks that dominate the Nasdaq’s weighting. Oracle, Tesla, and Microsoft are among the key drivers, while strength in utility shares has further supported the index.

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

Bond markets have played a critical role in shaping sentiment. The U.S. 10-year Treasury yield dipped below the 4% threshold following a combination of softer inflation readings and cooling jobs data, reinforcing expectations for Federal Reserve easing. Although yields later stabilized around 4.07%, they still posted a fourth straight week of declines. Lower yields tend to reduce discount rates for equities, particularly growth-oriented technology stocks, thereby enhancing their valuation appeal. This backdrop aligns well with the current bullish tone in the Nasdaq.

Nasdaq finds technical support at 20 EMA above key 22,000 level

The focus now shifts to the Federal Reserve’s upcoming decision later this week, widely anticipated to deliver the first-rate cut in nine months. A policy shift of this nature is generally supportive for equities, particularly for interest-sensitive sectors. Market participants are already positioning for such an outcome, which explains the premarket gains. A confirmed rate cut could provide the next leg higher for the Nasdaq Composite, potentially extending the record-setting sequence.

Still, the pace of gains suggests the likelihood of profit-taking at some point. Short-term retracements are a natural part of extended rallies. From a technical perspective, the 20 EMA on the one-hour chart has risen above the key, 22,000 psychological level, providing a buffer against deeper pullbacks. Any correction is therefore expected to find support above that line, allowing the uptrend to preserve its structure.

Overall, the Nasdaq Composite enters the new week at record levels, supported by strong technical underpinnings and a favorable macro backdrop. Investor anticipation around artificial intelligence themes and monetary easing could keep the index well bid, though traders will be alert to near-term pullbacks as part of healthy consolidation. The balance of evidence still points to higher price levels ahead.

Nasdaq hits 22,042 record as strong trading volume confirms broad investor commitment. Tesla rally and institutional flows supported Nasdaq momentum toward higher record levels.

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