Nasdaq Composite stalls below 20-day EMA as early week momentum fades ahead of PPI data

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Sholanke Dele

25.11.2025

Nasdaq Composite stalls below 20-day EMA as early week momentum fades ahead of PPI data — Nasdaq climbed 2.6% to 22,900

The Nasdaq Composite [IXIC] opened the final week of November on a strong bullish note, climbing 2.6% on Monday from last week’s close at 22,280 to a high of 22,900. This advance extends the rebound that began late last week and marks a shift in momentum after three consecutive weeks of lower closes. The recent uptick reflects growing optimism across the technology sector as traders reassess AI valuations and macroeconomic risks.

- Nasdaq climbed 2.6% to 22,900 as AI optimism and dovish Fed remarks boosted sentiment.

- 20-day EMA resistance capped Monday’s rally, leaving the index just below 23,000 level.

- Traders eye the Core PPI release for cues on inflation and potential rate cut.

Semiconductor stocks and large-cap tech names led the Monday rally. Tesla and Alphabet both gained over 6%, while chipmakers such as Broadcom, AMD and Micron also posted strong gains. These moves suggest market participants are growing less concerned about an AI overvaluation correction, especially after the recent pullback reset expectations.

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

Beyond stock-specific catalysts, Monday’s rally was also supported by broader macro factors. U.S. President Trump posted on social media that he had held a positive phone call with Chinese President Xi Jinping and planned a visit to China in April. That statement helped ease concerns about tensions between the world’s two largest economies. In parallel, Federal Reserve Governor Christopher Waller’s remarks about supporting a rate cut next month boosted sentiment across risk assets.

Nasdaq RSI at 50 signals shift from bearish trend to neutral sentiment zone

However, the Nasdaq Composite faced resistance at the 20-day EMA, which capped Monday’s rally below the psychological 23,000 level. In Tuesday’s premarket session, the index gave back about 0.5%, or 125 points, reflecting some hesitation near this technical ceiling. The daily RSI now stands at 50, marking a shift from bearish to neutral territory.

Investor focus has now turned toward the delayed release of U.S. Core PPI data. The data, postponed due to the government shutdown, is expected to print at 0.2%, up from the previous −0.1%. If the actual figure exceeds the forecast, it could fuel expectations of sticky inflation. That would strengthen the dollar index and pressure equities, including the Nasdaq Composite, as rate cut hopes get repriced. In that case, the index may extend its pullback and test the 50-day EMA support at 22,700.

On the other hand, a weaker-than-expected PPI release would reinforce the case for a December rate cut and may reignite bullish momentum. That could encourage a break above the 20-day EMA and open the path toward a 23,000 retest and potential breakout.

We discussed how the Nasdaq Composite held flat near 22,300 despite fading rate-cut hopes. The index fell 2.8% last week, marking its worst performance since March’s market slump.

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