While China’s economy shows signs of stress—especially with the latest PMI numbers pointing to a contraction in manufacturing activity and trade tensions escalating—U.S. markets are showing unexpected resilience. Notably, the Nasdaq 100 index (US100) has remained firm, reflecting investors’ continued confidence in U.S. tech giants.
Nasdaq (US100) Holds Steady Despite Global Tensions
Despite Donald Trump’s renewed tariff threats on Chinese goods and mounting uncertainty around a potential trade deal, the Nasdaq has climbed back toward its recent highs. The index appears to be absorbing macroeconomic shocks better than expected, with tech stocks leading the charge amid falling inflation expectations and strong U.S. job data.
Technical Analysis: Nasdaq in a Recovery Channel
Looking at the 1-hour Nasdaq chart, the price action reveals a strong bullish recovery after a sharp sell-off earlier in the month. The index dropped to a low of around 21,300 on June 3rd but has since rebounded impressively, reaching the 21,740 area at the time of writing.
Key highlights:
Support Zone: The 21,300 – 21,360 range has acted as a solid support area, with price bouncing off this level twice in the past week.
Resistance Area: The next key level to watch is around 21,800 – 21,880, where price faced rejection in late May.
Volume & Momentum: Recent bullish candles with long bodies and small wicks indicate strong buyer interest, while momentum appears to favor continued upside in the short term.
Traders will be watching to see if the index can break and hold above 21,800, which could signal a potential continuation toward the 22,000 psychological level.
Conclusion: Eyes on Trade Talks and Tech Strength
While China’s economic weakness and political uncertainty continue to dominate headlines, the Nasdaq’s resilience suggests that investor sentiment remains cautiously optimistic. As long as tech earnings remain strong and U.S. macro data supports growth, dips in the Nasdaq are likely to be bought.
However, traders should be cautious of volatility driven by geopolitical headlines, especially related to U.S.-China relations and potential policy shifts ahead of the upcoming U.S. election.
For now, the trend favors buyers—but all eyes are on the resistance near 21,800, and the market’s next move will likely depend on both technical breaks and developments in trade diplomacy.
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