The Nasdaq showed resilience throughout the trading day, navigating key inflation data and geopolitical events to close on a bullish note. The market-maintained strength despite rising U.S. wholesale prices and brief volatility triggered by tariff-related headlines, ending the session at new highs.
Asian Session: Nasdaq Futures Hold Range Ahead of PPI Release
Nasdaq futures traded within a narrow 75-point range during the Asian session, reflecting cautious sentiment as traders positioned themselves ahead of the U.S. Producer Price Index (PPI) release. A slight upward bias indicated tentative optimism, with market participants awaiting key inflation data that could influence Federal Reserve policy expectations.
European Session: Nasdaq Futures Dip Before Finding Support
During the European session, price drifted lower, breaking out of earlier consolidation to reach session lows near yesterday’s point of control (POC) at 21,753 and the previous day’s settlement level. The market then stabilised, consolidating around last week’s value area high (VAH), oscillating between that level and yesterday’s POC as traders awaited the U.S. PPI data.
U.S. PPI Data Sparks Market Volatility
The U.S. PPI data revealed a notable rise in wholesale prices last month, underscoring mounting inflationary pressures. Nasdaq futures experienced brief volatility following the release but held firm, breaking above the European session’s consolidation range and retesting last week’s value area high (VAH) ahead of the New York open.
| Metric | Actual | Forecast | Previous |
|---|---|---|---|
| Core PPI (MoM) (Jan) | 0.3% | 0.3% | 0.4% |
| Core PPI (YoY) (Jan) | 3.6% | 3.3% | 3.7% |
| PPI (YoY) (Jan) | 3.5% | 3.2% | 3.5% |
| PPI (MoM) (Jan) | 0.4% | 0.3% | 0.5% |
source: Economic Calendar – Investing.com
New York Session: Nasdaq Futures Extend Rally
Again, price rallied during the New York session, reaching an intraday high of 22,056. Tariff-related announcements from President Trump briefly triggered volatility, but the market quickly shrugged off these concerns, rebounding strongly to surpass the January 22 high and set a new daily peak at 22,122.
Nasdaq Outlook: Can Bulls Sustain Momentum?
The day’s price action highlighted the Nasdaq’s resilience, absorbing macroeconomic data and geopolitical headlines while maintaining a bullish bias. The Nasdaq demonstrated strength despite inflationary pressures from the PPI data and brief volatility triggered by Trump’s tariff-related announcements. The ability to test key levels, including the January 22 peak, signals continued bullish momentum.
