Nasdaq futures rebound fades at key EMAs as Tesla and IBM weigh on sentiment

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Sholanke Dele

23.10.2025

Nasdaq futures rebound fades at key EMAs as Tesla and IBM weigh on sentiment — Tech earnings weigh on Nasdaq upside

Nasdaq Composite pulled back sharply on Wednesday from the $23,000 resistance level after flirting near its record high at $23,120 earlier in the week.

The index fell over 400 points in the previous session, dropping to a low of $22,500 where the decline was cushioned by the lower trendline of the rising channel that has guided its movement since last week. That supportive trendline helped the index recover slightly to close at $22,750, highlighting the presence of dip buyers defending the broader uptrend.

- Nasdaq dropped 400 points before dip buyers lifted it back toward $22,750 intraday close.

- Tesla and IBM earnings triggered broad tech weakness, weighing on Nasdaq sentiment.

- Resistance at $23,000 and mixed earnings kept traders hesitant ahead of economic data.

The structure of the chart shows that Nasdaq has been making large swing highs and lows within a wide ascending channel. Each retracement has been met by renewed demand near the channel base, suggesting that investors still see value on dips despite the increasing volatility near record levels. However, the repeated rejection at $23,000 shows strong overhead pressure that could limit further upside until key earnings and macro catalysts provide fresh conviction.

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

In Thursday’s premarket session, Nasdaq futures rose by over 100 points but lost momentum after encountering resistance at the 20 and 100 EMAs on the one-hour chart. Those levels acted as short-term barriers that reversed the early rally and pushed prices back toward the channel base. The rejection highlights indecision among traders who are weighing mixed corporate earnings against the prospect of a delayed government data release due to the ongoing shutdown.

Earnings season optimism wanes while policy uncertainty from trade talks fuels caution

Tesla and IBM earnings weighed heavily on sentiment across the tech sector. Tesla shares fell 3.3% after quarterly profit missed market expectations despite a revenue beat. IBM dropped 6.6% following a slowdown in its core cloud segment, dragging on large-cap peers. While most companies have outperformed estimates this season, the cautious tone in their outlooks has made investors reluctant to chase prices higher.

In addition, simmering U.S.-China trade concerns continue to influence sentiment. Negotiations between trade representatives are ongoing, but uncertainty about future policy decisions has encouraged profit-taking near the highs. Without Thursday’s jobless claims data, investors lack new macro input and are left dissecting earnings reports to gauge the sustainability of the rally.

If momentum revives during the cash session, the Nasdaq must break above the 20 and 100 EMA resistance to reattempt the $23,000 level. Failure to hold $22,500 could open the way toward $22,200, where the next major support sits within the broader rising structure.

We discussed the Nasdaq consolidating near 23,000 as weaker Netflix and chip results limited investor optimism. RSI and 20 EMA support had suggested a bullish bias despite the temporary earnings-driven consolidation.

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