- Nasdaq Index is on the way up despite renewed fears over trade tariffs with the August 1 deadline here. Tech is proving too much of an allure
The Nasdaq Index (INDEXNASDAQ: .IXIC) rose by 0.53% at the opening bell, hitting a new record high of 23,587 points. The gains are driven by a blend of factors, including strong US GDP growth and upbeat tech company earnings figures.
Microsoft and Meta released their results for the quarter ending June 2025, injecting a strong momentum into the tech-heavy Nasdaq Index. Microsoft’s stock price spiked up more than 6%, reaching a historic market valuation of $4 trillion. That milestone saw it become only the second U.S. company to reach that valuation, weeks after Nvidia.
Meta and Microsoft’s huge profits are mostly due to their success at monetizing AI through higher advertising ARPU, expansion in cloud infrastructure earnings, and AI-enabled features.
The U.S. economy grew by 3.0% in Q2 2025, a significant upturn from the 0.5% contraction in Q1. This unexpected bounce beat the forecast growth figures and showed that the economy is still strong. Even while there are worries that growth is overblown because of lower imports, the overall health of the economy has injected an upbeat sentiment into the market.
Meanwhile, although the Federal Reserve held interest rates steady in July and hasn’t indicated near-term cuts investors appear confident thanks to strong performance by the tech industry. Analysts opine that the continuous trend in tech profits may help keep growth steady even when trade policies are still unclear. That favours the Nasdaq Index to stay on the growth path in August.
That said, fresh trade tariff concerns are back in play as the August 1 deadline comes with the US and India embroiled in a new spat, with the former imposing a 25% trade tariffs on the latter. Also, US President Donald Trump’s 10-12-day ultimatum to halt its war against Ukraine could bring headwinds in the new month.
Nasdaq Index Prediction
Nasdaq Index pivot mark is at 23,264 points and action above that level favours the upside to prevail. The index will likely meet the first hurdle at 23,600. A stronger momentum will break above that level and potentially test 23,700 in extension.
On the other hand, going below 23,264 will shift the momentum to the downside, with the first support likely to be established at 23,100 points. The upside narrative will be invalid below that level. Also, an extended control by the sellers could send the action lower and test 22,910 points.
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