Jerome Powell addressed tariffs’ impact on inflation, noting uncertainty about the extent. He mentioned that the policy isn’t overly restrictive, and there’s no immediate need for a rate cut, which may cause friction with President Trump.

Major US stock indices reversed gains, with the NASDAQ dipping to 19,489.56, close to its 100-hour moving average of 19,488.85. Buyers rallied the index to 19,540, indicating strong technical support at this level, suggesting a cautiously bullish short-term outlook.

Impact Of Moving Averages

If prices fall below this 100-hour moving average, it could lead to increased downward momentum, targeting the 200-hour moving average at 19,199.99. The S&P index fell below its 100-hour moving average, trading at 5977.96, down by 4.8 points, marking a 0.8% decrease for the day.

Continued trading below this level could indicate further bearish trends for the NASDAQ, with traders eyeing the 200-hour moving average at 5926.72. This key level was last breached on April 30, signalling potential challenges for the market if it occurs again.

Powell’s comments reveal an ongoing level of uncertainty about how tariffs could ripple into consumer prices. He made it clear that monetary policy, for now, doesn’t require immediate easing, suggesting the current federal funds rate is neither stifling growth nor actively encouraging it. His remarks point to a neutral posture rather than a shift towards accommodation. This perspective pushes back against expectations of rapid rate cuts, especially ones driven by political pressure. The hint of friction with Washington is not new, but by restating his focus on economic data over political influence, Powell reinforces the independence of monetary decisions.

Technical Analysis And Market Readiness

From a technical standpoint, we see a delicate balance forming. When the NASDAQ dipped below but quickly reclaimed its 100-hour moving average, we interpreted this as a classic test-and-hold pattern. That brief move lower followed by a bounce gives us reason to expect buyers are, at the moment, seeing value at that level. Still, there’s very little room for error. Should that average give way decisively, attention quickly shifts to the 200-hour level—a deeper threshold that held firm earlier this quarter. Losing that would undermine any resilient tone the market has tried to carry through recent sessions.

Meanwhile, the S&P chart is offering fewer reassurances. Trading beneath its respective 100-hour average shows a subtle shift in momentum away from buyers and onto sellers. The drop we recorded, though not alarming in scale, was enough to unsettle short-term bullish sentiments. Sustained activity below this marker tends to invite further downward interest, and there’s no ambiguity: traders are already watching closely for signs of continuation. If price starts gravitating toward the 200-hour average, where support previously proved durable in late April, it tells us sellers are in control.

We are approaching a juncture where technicals will either reinforce recent stability or begin to unravel it. The reaction to these averages in the coming sessions must be measured not just in price touches but in whether volume and follow-through confirm intent. Lapses below key moving average thresholds are rarely isolated events; they often spark momentum-driven trades that extend beyond daily fluctuations. In this context, we remain positioned to respond quickly if markets tip further below.

As always, it’s not just about observation but about readiness. Guarded optimism is still warranted within defined guardrails, but the trigger points are now in sight. Should key averages give way, the shift won’t catch us off guard.

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