23 October 2025,02:42
Daily Market Analysis New
23 October 2025, 02:42
*Reports of potential U.S. export curbs on China reignited trade tensions, triggering a broad risk-off move across markets.
*Disappointing earnings from Netflix and Tesla weighed heavily on sentiment, erasing earlier AI-driven optimism.
*Investors now await Friday’s U.S. inflation data, seen as the next key catalyst for the Fed’s policy direction and market sentiment.
Market Summary:
U.S. equity markets closed sharply lower in the last session, with all three major indices succumbing to a potent mix of resurgent trade war anxieties and disappointing corporate earnings. The Dow Jones Industrial Average led the decline, sliding over 300 points and erasing its gains from earlier sessions, while the Nasdaq Composite fell nearly 1%.
The primary catalyst for the sell-off was a report indicating the U.S. administration is considering broad-based export curbs on China, specifically targeting U.S.-made software and technology. This move reignited fears of a full-scale renewal of the trade war, creating significant uncertainty and prompting a broad-based risk-off sentiment.
Compounding these external pressures were lackluster earnings from key technology giants. Disappointing reports from Netflix and Tesla, which missed market expectations, dampened the bullish momentum that had been largely fueled by AI optimism. This sector-specific weakness added substantial weight to the tech-heavy Nasdaq.
Furthermore, the market had already been on edge due to higher bond yields earlier in the week, which continued to pressure growth-oriented stocks by making fixed-income alternatives more attractive. All eyes are now firmly set on Friday’s release of the U.S. Consumer Price Index (CPI) reading. This crucial inflation data will be pivotal in shaping the Federal Reserve’s policy path and is expected to serve as the next major catalyst for Wall Street’s direction, potentially overriding the current negative sentiment or amplifying it should inflation prove stickier than anticipated.
Technical Analysis
The Nasdaq Composite faced significant resistance near its all-time high at the 25,200 level, resulting in a sharp rejection and a 1.5% intraday plunge before a minor recovery. Despite this setback, the index’s broader structure remains bullish. It continues to trade within a defined uptrend trajectory, characterized by a series of higher highs and firm support above its ascending trendline.
However, the failure to break through the record high has triggered a cautionary shift in momentum. The Moving Average Convergence Divergence (MACD) has generated a bearish death cross, albeit while positioned above its zero line. This signal suggests that while the broader trend is not broken, the immediate bullish momentum is decisively easing and the index may be due for a period of consolidation or a pullback.
The Relative Strength Index (RSI) offers little directional conviction, hovering neutrally near its mid-point. The immediate bullish outlook remains contingent on the index holding above its key uptrend support. A breach of this support level would signal a more significant deterioration, potentially validating the bearish momentum shift indicated by the MACD. For now, the trend is higher, but the momentum has stalled at a critical juncture.
Resistance level: 25,180.00, 25,500.00
Support level: 24,566.00, 24,250.00
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