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Nasdaq 100 Rebounds After Trumps Global Tariff Hikes – Can 20,581 Hold?

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Written By: Lilly Mwogah
Summary:
  • Nasdaq 100 rebounds in premarket trading after tariff hikes shake tech stocks. Can the index hold 19,896.33 or will selling pressure return?

The Nasdaq 100 Index (NDX) is attempting a rebound after a volatile session triggered by fresh global tariff announcements. On April 2, 2025, the U.S. government imposed a 10% baseline tariff on all imports, targeting China, Europe, and semiconductor-producing nations with additional levies on tech components, AI chips, and industrial machinery. In response, China retaliated with tariffs on U.S. chipmakers and cloud computing services, fueling concerns over supply chain disruptions.

As of premarket trading today, the Nasdaq 100 is hovering around 19,740, recovering from yesterday’s close at 19,581.78. Traders are watching whether the index can reclaim the 19,896.33 resistance level, which has acted as a short-term barrier.

Tech Stocks Under Pressure as Tariff Risks Mount

The tariff escalation has rattled big tech stocks, with Apple (AAPL), NVIDIA (NVDA), and Microsoft (MSFT) leading the losses. These companies are at the heart of the trade war, facing both increased costs and potential demand slowdowns in key international markets.

  • Apple (-2.1%): Faces higher import duties on China-assembled components, adding margin pressure.
  • NVIDIA (-3.8%): AI chip exports to China could face stricter regulations, weighing on sales.
  • Microsoft (-1.6%): Cloud services impacted as China rolls out new restrictions on foreign tech providers.

Nasdaq 100 Technical Outlook: Key Levels to Watch

Support and Resistance Zones:

Premarket Resistance: 19,896.33 → 20,581.71
Breakout Target: 21,534.27 → 22,138.33
Support Levels: 19,164.49 → 18,432.64
Major Bearish Pivot: 17,445.24

Nasdaq 100 share price April 3, 2025

Market Sentiment: Cautious But Resilient

Despite the tariff-induced volatility, the market is finding stability as traders shift focus to upcoming U.S. economic data, inflation trends, and Federal Reserve policy updates. Earnings season is also approaching, and tech giants will need strong guidance to regain bullish momentum.

For now, traders should watch for high-volume moves, especially around key technical levels. The tariff situation remains fluid, and any further escalation could dictate the Nasdaq 100’s next big move.

This article was originally published on InvestingCube.com. Republishing without permission is prohibited.

This post was last modified on Apr 03, 2025, 14:30 BST 14:30

Written By: Lilly Mwogah
Lilly Mwogah

Lilly Mwogah is a finance writer specializing in cryptocurrencies, forex, and indices. Passionate about simplifying complex financial topics, she creates engaging content for a broad audience. With a solid grasp of market trends and economic indicators, her work informs and empowers readers to navigate the dynamic finance world.

Published by
Written By: Lilly Mwogah