Nasdaq futures recovered on January 29 after testing a critical support level, reversing earlier losses from the session. The market opened strong in Asian trading but encountered resistance in Europe, triggering a selloff that extended into the U.S. session. However, buyers stepped in at a key technical zone, driving a late-session recovery and pushing prices back above important intraday levels.
Market sentiment remained influenced by the Federal Reserve’s upcoming policy announcement and anticipation of earnings reports from major tech companies, including Meta, Microsoft, IBM, and ServiceNow. This combination contributed to heightened volatility throughout the session.
Technical Levels Shape Nasdaq’s Intraday Reversal
Nasdaq futures pushed higher in overnight trading but ran into resistance at 21,697 (Wednesday’s high). Bears stepped in, forcing a reversal that gained momentum through the European session as prices failed to hold earlier gains.
The selling pressure continued into the U.S. session, driving futures down to 21,367. Aggressive buyers absorbed liquidity at this level, triggering a sharp reversal. This recovery pushed prices higher into the close, reclaiming lost ground. The strong reaction around the monthly VWAP signals firm support, making it a key level to watch heading into the next session.
Federal Reserve Holds Rates Steady, Keeping Markets on Edge
The Federal Reserve kept rates at 4.25%–4.50%, with Chair Jerome Powell maintaining a cautious stance on monetary policy. While widely expected, his comments left markets uncertain, keeping traders focused on upcoming economic data for further signals on potential rate cuts.
Tech Earnings Drive Post-Market Moves
Tech earnings played a crucial role in market sentiment. Meta surged after reporting a 21% year-over-year revenue increase, driven by AI expansion, boosting investor confidence in the sector. Microsoft delivered strong overall results, though a slight miss in cloud revenue limited post-market gains. Meanwhile, IBM’s AI-focused strategy helped drive an 8% after-hours gain, adding to the sector’s momentum.
