US stock indices are sharply higher following President Trump’s decision to ease reciprocal tariffs on countries that chose not to retaliate. The move has brought a degree of relief and a little more certainty to the markets, reducing near-term pressure. However, the larger unresolved issue with China still looms, and the timeline for any progress remains uncertain. Will both sides come to the table, and is there room for compromise? That remains to be seen.
Technical outlook:
S&P 500:
The S&P index climbed sharply, filling a gap from last week’s trading on the 4-hour chart. It also tested a key swing level near 5402, with the high reaching 5396.38—just shy of that target. A clean break above 5402 would open the door to the next key level at 5491.24, which marks the 50% retracement of the decline from the 2025 high.
NASDAQ 100:
The NASDAQ also surged, moving above the September 9 swing low at 16,668.57, and briefly pushing through the 38.2% retracement of the drop from the 2024 all-time high. That retracement level sits at 16,854.68, and today’s high printed at 16,860.51—just above it. The index is currently retesting that zone. A sustained move higher could open the path toward the next major target at 17,238.24.
This article was written by Greg Michalowski at www.forexlive.com.