Nasdaq Composite holds flat near 22,300 despite Fed remarks tempering rate cut hopes

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24.11.2025

Nasdaq Composite holds flat near 22,300 despite Fed remarks tempering rate cut hopes — Nasdaq fell 2.8% last week

The Nasdaq Composite Index started the new week on a flat note as futures traded sideways during Monday’s premarket session, hovering around the previous week’s close at 22,300. This lack of volatility follows a sharp selloff that defined last week’s session, where the broader market structure decisively turned bearish.

The shift came after the Nasdaq Composite broke below its October low at 22,200, invalidating the last higher low that had supported the prior bullish structure on the daily chart.

- Nasdaq fell 2.8% last week, its worst performance since March’s market slump.

- EMA crossover on 4-hour chart signals sellers retaining control below 22,300 resistance.

- RSI near 36 signals growing downside momentum despite slight rebound on Fed optimism.

The turning point was not without a trigger. Despite an initial boost from Nvidia’s earnings last week that temporarily lifted the index, sentiment quickly soured. Investors questioned whether the AI sector’s growth trajectory had been priced in too aggressively.

This concern, combined with reduced optimism over a December rate cut by the Federal Reserve, deepened the selloff. As valuations in heavyweight tech stocks were re-evaluated, selling pressure intensified and dragged the Nasdaq Composite below key technical levels.

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

Technically, the breakdown of the October low confirmed a bearish market structure shift. According to price theory, any upward movement from this point is more likely to be interpreted as a retracement rather than a reversal. The breakdown extended to 22,900, and it was briefly cushioned by the 100 EMA, which offered temporary support and helped the index recover to a weekly close at 22,300. Still, the index posted a 2.8% weekly loss, its worst since March.

Nasdaq 20–100 EMA death cross highlights continued weakness

Short-term moving average signals now favor the sellers. On the 4-hour chart, the 20 EMA has crossed below both the 50 and 100 EMAs, forming a sequence known as a death cross. This alignment typically reflects continued weakness and implies that the market could test new lows below the 22,000 zone if momentum persists.

Further supporting this bearish bias is the daily RSI, which has dropped to 36, a reading not seen since April. This indicates growing downside pressure and leaves more room for the index to extend its decline.

However, there was a shift in tone late last week after comments from Federal Reserve official John Williams. His suggestion that rate cuts could happen “in the near term” has led to renewed speculation of a December easing. Fed funds futures now show a 57% chance of a 25 basis point cut. If traders hold on to that expectation, the Nasdaq Composite may attempt a short-term push toward 23,000, though technical resistance levels could cap any rebound attempt.

We discussed how Nasdaq futures jumped nearly 480 points as Nvidia’s strong results boosted AI confidence. The index climbed to a three-day high after upbeat earnings reignited demand across tech stocks.

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