Nasdaq soars 1.4% as traders ignore tariff fears and buy the dip
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Tech stocks surge, pushing Nasdaq up 1.4% as investors shift focus from trade war concerns to strong corporate earnings. With tariff fears fading—at least temporarily—risk appetite returned, lifting US equities across the board.
Tech Leads the Rebound as Bargain Hunters Step In
After a volatile Monday, traders saw an opportunity to buy the dip, snapping up beaten-down tech stocks. The Nasdaq outperformed its peers, with the S&P 500 rising 0.7% and the Dow Jones adding 0.3%, underscoring the tech sector’s leadership in the market recovery. With earnings season in full swing, investors prioritized profit growth over geopolitical risks, betting that strong fundamentals will continue to drive stock prices higher.
Trump and Xi Expected to Discuss Tariffs
The US-China trade dispute remains in focus, but sentiment improved as reports surfaced that President Trump and Chinese President Xi Jinping are expected to hold talks. The call—if confirmed—could potentially ease tensions and alter the trajectory of recent tariff escalations. Despite China’s 15% tariffs on US imports and Trump’s 10% levies on Chinese goods, investors remain hopeful that negotiations will lead to a resolution, or at least a temporary truce.
Markets Brace for Nonfarm Payrolls Report
Looking ahead, Friday’s nonfarm payrolls (NFP) report will be a critical market driver. The US economy is expected to have added 154,000 jobs in January, down from December’s 254,000. A major deviation from expectations could influence Federal Reserve policy, potentially impacting the timing and magnitude of rate cuts. The Fed has signaled two rate reductions in 2025, but stronger labor data could challenge that outlook.
Market Outlook: Can the Nasdaq Sustain Its Momentum?
With tariff concerns temporarily sidelined, earnings season and economic data will dictate the next move for equities. If Nasdaq bulls can push past resistance at 16,000, further upside may follow. However, renewed trade tensions or a weaker-than-expected jobs report could reverse gains and bring volatility back into play.
Tech Leads the Rebound as Bargain Hunters Step In
After a volatile Monday, traders saw an opportunity to buy the dip, snapping up beaten-down tech stocks. The Nasdaq outperformed its peers, with the S&P 500 rising 0.7% and the Dow Jones adding 0.3%, underscoring the tech sector’s leadership in the market recovery. With earnings season in full swing, investors prioritized profit growth over geopolitical risks, betting that strong fundamentals will continue to drive stock prices higher.
Trump and Xi Expected to Discuss Tariffs
The US-China trade dispute remains in focus, but sentiment improved as reports surfaced that President Trump and Chinese President Xi Jinping are expected to hold talks. The call—if confirmed—could potentially ease tensions and alter the trajectory of recent tariff escalations. Despite China’s 15% tariffs on US imports and Trump’s 10% levies on Chinese goods, investors remain hopeful that negotiations will lead to a resolution, or at least a temporary truce.
Markets Brace for Nonfarm Payrolls Report
Looking ahead, Friday’s nonfarm payrolls (NFP) report will be a critical market driver. The US economy is expected to have added 154,000 jobs in January, down from December’s 254,000. A major deviation from expectations could influence Federal Reserve policy, potentially impacting the timing and magnitude of rate cuts. The Fed has signaled two rate reductions in 2025, but stronger labor data could challenge that outlook.
Market Outlook: Can the Nasdaq Sustain Its Momentum?
With tariff concerns temporarily sidelined, earnings season and economic data will dictate the next move for equities. If Nasdaq bulls can push past resistance at 16,000, further upside may follow. However, renewed trade tensions or a weaker-than-expected jobs report could reverse gains and bring volatility back into play.