The US stock market just experienced one of the most powerful waves of optimism in recent years. On Wednesday, following a statement from President Donald Trump, major stock indices posted record-breaking gains.
The S&P 500 jumped 9.52%, the Dow Jones added 7.87%, and the Nasdaq surged 12.16%, showing its best single-day performance since 2001.
Market euphoria was sparked by an unexpected move from the White House. Despite heightened tensions with China, including a sharp increase in tariffs to 125%, the US administration announced a 90-day pause on new trade restrictions for countries that have not implemented retaliatory measures.
This provided much-needed relief, easing geopolitical uncertainty. Investors took it as a sign that, despite its tough rhetoric, the White House is not yet ready to escalate trade conflicts with all major partners.
Tech giants led the Nasdaq rally. Thus, Tesla soared 22.7%, Nvidia climbed 18.7%, Apple gained 15.3%, Meta added 14.8%, and Amazon rose 12%. These companies are highly sensitive to global investment sentiment, and their sharp rebound suggests a broad return of capital to risk assets.
Technical outlook for S&P 500 and Nasdaq 100
The S&P 500 opened today's session at 5,340, slightly above recent resistance around 5,300–5,320, which may now act as short-term support. A stronger support zone has formed between 5,270 and 5,270–5,285, where the index consolidated before breaking higher.
Below that lies a more significant level near 5,170, the launch point for yesterday's sharp rally. If the market chooses to correct after such a dramatic move, these areas will serve as key tests of the new bullish trend's strength.
Immediate resistance now sits around 5,370–5,385, while the next major target is the psychologically important 5,450 mark that is close to the all-time high.
The Nasdaq 100 is trading near 18,700. After such a powerful rally, the index looks technically overbought, but bullish momentum remains intact. Key resistance levels have been breached, with 18,400 now acting as the nearest support.
A stronger support zone remains around 18,100, where consolidation and volume accumulation occurred before the breakout. The next resistance lies at 18,850–18,900, with the level of 19,000 looming large as a major psychological threshold.
The current technical setup suggests a high probability of either a short-term pullback or sideways consolidation. After such an intense impulse, the market may need time to digest the news and lock in profits.
However, the underlying fundamentals still favor a continuation of the upward trend.
The announced tariff reprieve is not just a pause in confrontation, but it is a strong signal to the markets that the US administration is open to negotiation and maintaining balance in its trade relationships.
This is particularly significant amid increasing rhetoric toward China. Despite the aggressive hike to 125% tariffs, maintaining open channels with other partners could help stabilize global supply chains and ease inflationary pressures.
A strong labor market report, solid corporate earnings, and a break in the trade war narrative are forming a favorable backdrop for continued moderate growth.
However, the situation remains fragile. A single tweet or statement from the White House could quickly reverse sentiment. Attention is now gradually shifting toward the Federal Reserve and its monetary policy stance.
Tesla at turning point: start of new rally or bull trap?
Tesla Inc. (TSLA) shares soared 22.58% from the previous close. Today, the stock is experiencing a mild correction.
Fundamental analysis
In 2025, Tesla has faced several headwinds, including declining sales, intensifying competition, especially from Chinese automakers, and political fallout from CEO Elon Musk's involvement in President Trump's administration. These factors have contributed to a 34.6% drop in the stock year-to-date.
However, some analysts believe the concerns are overstated. Benchmark, for instance, highlights the upcoming launch of a new model in the second quarter of 2025 and a limited rollout of robotaxis in Austin, Texas, as potential growth catalysts.
Also emphasized are the prospects of the Optimus robotics program, which could transform Tesla into a leader in automated solutions. Despite lowering its price target from $475 to $350, Benchmark included Tesla among its top investment ideas.
On the other hand, analysts at Wedbush slashed their 12-month price target by 43%, from $550 to $315, citing a "perfect storm" created by Trump's trade policies and Musk's political alignment.
Technical analysis
Tesla is currently trading at $263.90. Its all-time high was reached on December 18, 2024, at $488.54.
Key support and resistance levels for Tesla stock
Support: $225 and $186
Resistance: $360 and $421
Investors should monitor these levels closely, as a breakout in either direction could signal the stock's next major move.
