Nasdaq Composite steadies as investors weigh Fed easing path and policy risks

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Sholanke Dele

22.09.2025

Nasdaq Composite steadies as investors weigh Fed easing path and policy risks — Nasdaq traders weigh potential policy headwinds.

The Nasdaq Composite began the new week in a measured fashion, after notching a record close near 22,630 last Friday.

The rally into the record close was dominated by the Federal Reserve’s first rate cut of 2025 and strong earnings from FedEx, which reported quarterly profit and revenue above expectations. FedEx shares gained 2.3%, while Apple, Palantir Technologies, and Oracle also advanced, lifting the tech-heavy index alongside broader U.S. equities. The record close was supported by robust market participation, with daily trading volume at its highest in more than 60 days.

- Nasdaq targets 23,000 milestone after three consecutive weeks of bullish gains.

- Strong earnings and Fed easing fuel record close supported by high volume.

- Trump visa fee risks might weigh on tech stocks despite resilience.

Friday’s session stood out not only for the Nasdaq’s strength but also for the scale of trading activity across U.S. exchanges, which surged to 27.78 billion shares compared to the 17.41 billion average. The combination of a supportive Fed stance and solid corporate earnings provided a dual boost, driving the index to extend gains across a third consecutive week.

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

As trading opened this week, the Nasdaq futures slipped slightly ahead of the cash session, reflecting investor recalibration after last week’s euphoria. Markets have already priced in 44 basis points of easing by year-end, and while the Fed has outlined gradual further cuts, traders are looking for stronger policy signals to sustain momentum. A more explicit commitment to aggressive rate reductions or assurances of prolonged monetary accommodation would reinforce the bullish case for the Nasdaq, particularly given its sensitivity to interest rate expectations.

Nasdaq faces policy headwinds as Trump visa fee adds to tech sector risk

At the same time, external headwinds are forming. President Donald Trump’s announcement of a $100,000 fee for new H-1B worker visas introduces uncertainty for the tech sector, where reliance on skilled foreign labour is significant. While the Nasdaq held firm despite the news, investors remain alert to the implications for hiring costs and innovation capacity across major technology firms.

Technically, the index is set up to challenge the 23,000 psychological level if bullish sentiment persists. That target represents the next milestone for traders eyeing a fourth consecutive week of gains. On the downside, immediate support is located near 22,500, reinforced by the 20-period EMA on the one-hour chart. Maintaining price above this level would preserve the bullish structure, while a sustained break lower could suggest a deeper consolidation.

Investors are closely watching upcoming commentary from Fed officials John Williams, Thomas Barkin, and Stephen Miran. Their remarks could provide fresh direction, either validating expectations of further easing or tempering the outlook. For now, the Nasdaq’s record close signals underlying strength, though sustaining the rally requires supportive monetary cues and resilience against policy headwinds.

Powell’s remarks and dot plot are expected to shape Nasdaq’s near-term direction. Buyback projections near $600 billion add fuel to Nasdaq’s bullish momentum.

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