Key Highlights:

• NASDAQ 100 dropped to 18,644.15, retreating from an intraday peak of 19,056.65.
• U.S. futures weakened as tariff rollback hopes lost steam.
• Trump reversed criticism of Fed Chair Powell, but left rate outlook murky.
• Fed’s Beth Hammack said uncertainty supports a go-slow approach to policy.

The NASDAQ 100 lost ground on Thursday, closing at 18,644.15 following a sharp reversal from the 19,050 zone. A flurry of confusing policy signals out of Washington left traders reeling, with no clear direction for tech stocks or the broader equity space.

Markets initially rallied on hopes that President Trump would soften his stance on China tariffs. But that optimism faded fast when he backtracked, reaffirming trade pressure and reigniting fears of prolonged economic tension.

The reversal unsettled investors, especially as it came on the heels of Trump’s now-retracted criticism of Fed Chair Jerome Powell. While his softened tone brought momentary relief to bond markets, the lack of clarity on interest rate policy continued to weigh on risk sentiment—particularly in rate-sensitive tech.

🌐 Macro Snapshot: Sentiment Remains Fragile

Investor nerves remain on edge, as the U.S.–China trade narrative continues to swing wildly. Treasury Secretary Scott Bessent clarified there are no immediate plans to remove tariffs, dispelling earlier assumptions of a potential truce.

On the monetary side, longer-term U.S. Treasury yields dipped slightly, with the 10-year yield settling at 4.3578%, reflecting modest optimism that inflation remains under control. But Fed Governor Beth Hammack’s comments reinforced the need for caution:

“With the outlook still uncertain, a slower policy path remains appropriate.”

📉 Technical Outlook: Bullish Momentum Stalls

The NASDAQ 100 surged to 19,056.65 earlier in the session, extending a sharp rebound from the previous day’s low of 17,940.85. Initially, the technical picture was bullish—short-term moving averages (5, 10, 30) showed strong upward alignment, while the MACD signalled a bullish crossover with positive momentum.

🖼️ Chart: NASDAQ pauses below 19,000 as bullish steam fades – via VT Markets app

However, the rally hit resistance near 19,000. The index then retraced sharply, falling below the 30-period moving average and settling around 18,644.

MACD momentum has since flattened, and the histogram is hovering near the zero line—suggesting a loss of conviction. For now, the price is caught in a sideways range between 18,600 and 18,800.

• A break below 18,600 could test support at 18,500.
• A recovery above 18,800 may trigger another push towards 19,000.

Until then, the index appears to be consolidating rather than trending.

Picture: NASDAQ bulls lose steam near 19000 as consolidation kicks in, as seen on the VT Markets app

🔮 Outlook: Market Direction Hinges on Clarity

Markets are caught in a holding pattern. Mixed political messaging and a lack of clear guidance from the Federal Reserve have injected short-term volatility, particularly into tech-heavy sectors.

With no major breakthroughs on trade and policy narratives shifting daily, traders remain cautious. Until there’s more certainty around the Fed’s rate path and trade relations with China, the NASDAQ may stay trapped in choppy, range-bound conditions.

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