NASDAQ Gains on US-EU Trade Talks and Upcoming NVIDIA Earnings
The NASDAQ on Monday sharply rose regaining losses seen the previous week. Comments from the US on the progress of the EU-US trade negotiations resulted in a quick selloff causing the index to fall 2.80%. However, on Monday Trump told journalists the negotiations have now made progress after speaking directly with the EU Commission President. Investors will now fix their attention on NVIDIA’s quarterly earnings report due to be made publicly available tomorrow evening.
EU-US Trade Negotiations
The trade negotiations between the EU and US continue to have a significant impact on the stock market. The tone of the negotiations has become more positive this week which is supporting the NASDAQ. However, investors will be keen to look at the details of any trade agreement. Currently, experts believe the EU and US will make an agreement, but the impact on the market will depend on how high the tariffs agreed will be.
For example, previous tariffs on the EU were 20% after Trump’s “liberation day”. If the new agreement is significantly lower, the stock market and NASDAQ are likely to see a positive reaction. However, if tariffs see little change, the NASDAQ can still witness bearish volatility.
In addition to the trade negotiations, traders will also be closely monitoring the Durable Goods Orders, CB Consumer Confidence and tomorrow’s Federal Reserve Meeting Minutes. So far, the members of the Fed are not indicating any rate cuts for the summer. This includes Mr Neel Kashkari today speculating rate cuts may not come until after the summer months. However, an earlier adjustment will better support the NASDAQ.
Meta and Zuckerberg
Even with the stock market crash seen in March-April, Meta stocks are still trading almost 5.00% higher in 2025. The Meta CEO is reported to have started to take a pro-Trump view on the structure of the company. The CEO is doing everything possible to win over Trump hoping for less regulation on Social Media platforms, more allowance of free speech and to also target other countries which apply additional taxes on the platform. For example, the UK applies an additional 2% on Meta and Alphabet.
NVIDIA Quarterly Earnings Report
NVIDIA stocks have been one of the best performing of the past 3 years, however, the stock has been struggling in 2025 due to the new trade policy. Over the past week, the stock has also fallen 1.00%, but if the stock rises today and tomorrow, this would indicate investors expect a positive earnings report.
The company has beat the earnings expectations set by analysts in the past 2-years. It will be vital for both NVIDIA stocks and the NASDAQ overall for the company to beat both earnings and revenue expectations. A slight increase in the past has actually had a negative impact on the stock. Therefore, many will be hoping for the earnings per share figure to beat the expectations by at least 6% minimum.
NASDAQ (USA100) - Technical Analysis
The NASDAQ rose in value by 1.64% on Monday due to the positive developments mentioned above. The index did witness a retracement during this morning’s Asian session however, the price has risen and regained more than 70%. This indicates price momentum signals a bullish bias towards the continuation of the upward trend.
The NASDAQ is also currently trading above the VWAP for the day and above the main Moving Averages. Currently the RSI is trading above the 56.00 level again indicating upward price movements. According to technical analysis, if the price continues to remain above $21,195.00, the bullish bias is likely to remain.
In terms of risk indications, the High Low Index and the Volatility Index continue to indicate a “risk-on” appetite for the market. Other global indices are also increasing in value at the moment.
Key Takeaway Points:
- EU-US positive trade talks drive NASDAQ bullish price movement and negotiation outcomes remain key.
- NVIDIA earnings could boost the market if the Earnings Per Share expectations are beaten by at least 6%.
- Meta is gaining traction despite broader market challenges, with its CEO adopting a pro-Trump stance to reduce regulations.
- NASDAQ shows bullish momentum and obtains bullish indications after trading above key technical levels.
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Michalis Efthymiou
Michalis Efthymiou has extensive experience within the financial sector throughout the UK and Europe. After spending 5 years in London where Michalis operated as a financial advisor and an underwriter, he then entered the market analysis sector.
Additionally, he held training sessions and seminars in over seven countries across the globe and is now focused on providing investors with the required guidance to operate within the market with full confidence.
His teaching methods are based on technical analysis, fundamental analysis and order flow analysis, as well as how to view the market from an institutional angle.
