Insights 
VT 
Key Points
- Nasdaq 100 closed at 21,145.85, slipping 0.49% after reaching an intraday high of 21,250.90.
- President Trump’s delay on EU tariffs fuels early optimism, but price action turns defensive ahead of Nvidia’s earnings and Fed commentary.
U.S. tech stocks struggled to extend gains on Tuesday, with the Nasdaq 100 closing 0.49% lower at 21,145.85. The index had opened at 21,250.90 and briefly tested that level again before easing into the red. Markets initially rose after President Donald Trump backed away from imposing 50% tariffs on European Union imports starting June 1, restoring a July 9 deadline for trade negotiations.
Thin Holiday Liquidity Meets Month-End Flows
U.S. markets remained closed for Memorial Day, and UK markets were shut as well, contributing to a lack of volume overnight. Despite the lull, futures rallied: Nasdaq futures were up 1.26%, S&P 500 futures gained 1.11%, and FTSE futures climbed 0.94%.
IG’s Tony Sycamore noted that the delay in EU tariffs lifted sentiment temporarily, but investors are already looking ahead to month-end rebalancing and Nvidia’s upcoming earnings. Nvidia is forecast to report a 65.9% year-on-year jump in Q1 revenue on Wednesday. With the chipmaker seen as the bellwether for the AI sector, its results could heavily sway tech sentiment this week.
Technical Analysis
The Nasdaq 100 (NAS100) staged a sharp rebound from the 20679.4 low on the 24th of May, reclaiming ground above the key psychological 21000 level. Momentum carried the index to a peak of 21266, but price action has since turned sideways and slightly lower, forming a gradual descending channel.
Picture: NAS100 pulls back from 21266 peak as momentum fades; support at 21100 now under pressure, as seen on the VT Markets app
The MACD histogram shows flattening momentum, and the signal lines are converging, hinting at indecision or a potential pullback. Price is currently sitting just above minor support around 21100, and a clean break below this level may expose 20950–21000 as the next downside target. Bulls will need to reclaim 21250 to revive upward momentum.
Cautious Outlook Ahead of Nvidia, Fed, and PCE Data
With Nvidia’s results due mid-week and multiple Federal Reserve speakers scheduled, traders may remain on the sidelines until clearer direction emerges. Friday’s core PCE inflation data will also be key in shaping expectations for future interest rate moves.
