Nasdaq Composite climbs 1.33% premarket on renewed risk appetite and trade progress

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Sholanke Dele

27.10.2025

Nasdaq Composite climbs 1.33% premarket on renewed risk appetite and trade progress — Trade and rate sentiment lift Nasdaq

The Nasdaq Composite Index started the week on a strong note as futures jumped 1.33% or about 350 points in Monday’s premarket session, rising from last week’s close at 25,510 to a high of 25,850.

This upside move indicates that the index is set to trade above 23,500 during the cash session, marking its third consecutive day of gains. The surge represents a clear breakout above the top resistance trendline of the bullish channel that contained the uptrend for more than two weeks, confirming renewed strength in buying momentum.

- Nasdaq futures rise 1.33% premarket as trade optimism sparks renewed buying momentum

- RSI at 66 signals more upside potential as traders await Big Tech earnings reports

- Fed cut expectations and China trade progress strengthen Nasdaq’s bullish structure this week

The breakout came as optimism surrounding U.S.–China trade negotiations lifted investor sentiment. Negotiators from both sides over the weekend outlined the framework for a potential deal aimed at pausing further tariff hikes and easing China’s export restrictions on rare earth materials. The upcoming Thursday meeting between President Donald Trump and China’s Xi Jinping is now in focus, and traders are positioning for a possible breakthrough. This improvement in trade outlook has reinforced global risk appetite, prompting a strong bid across tech-heavy assets such as the Nasdaq.

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

Beyond trade headlines, macro and earnings catalysts are also feeding the rally. Market participants are anticipating a 25-basis-point interest rate cut from the Federal Reserve later this week after recent inflation data came in softer than expected. The prospect of cheaper borrowing conditions is once again fuelling demand for growth-oriented stocks, which dominate the Nasdaq’s weighting.

Nasdaq outlook hinges on AI profit expansion beyond earnings beat

A packed week of Big Tech earnings is adding another layer of optimism. Results from Microsoft, Apple, Alphabet, Amazon, and Meta are expected to offer fresh insight into whether strong spending on artificial intelligence and cloud infrastructure can sustain the rally that has driven valuations to record levels.

Analysts have warned, however, that mere earnings beats may not be enough to sustain the advance. Investors are now looking for evidence of durable profit expansion and confirmation that AI investments are translating into measurable revenue growth. Any disappointment on this front could trigger short-term profit-taking near record levels.

From a technical perspective, the daily RSI sits at 66, still in bullish territory and comfortably below overbought conditions. This leaves room for the Nasdaq to extend higher if sentiment holds steady. Overall, the alignment of supportive fundamentals, improving trade prospects, and bullish technical structure positions the Nasdaq Composite Index for continued upward movement in the near term.

We discussed Nasdaq futures rising 0.4% as Intel’s earnings lifted sentiment toward record levels. RSI stayed above midpoint, supporting the ongoing rally within the bullish channel structure.

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