Nasdaq 100 and S&P500: Indices Rally With Tech Stocks Leading – Key Levels in Play

S&P 500 Futures Rebound as Trump Tones Down Tariff Threats

E-mini S&P 500 Index futures climbed early Monday, retracing losses from Friday’s steep sell-off that had driven the market through its 50-day moving average at 6603.00 and into the 50% retracement level at 6554.75. The bounce follows a calming message from President Donald Trump regarding U.S.-China trade tensions, helping restore risk appetite across equity markets.

As of 13:49 GMT, the S&P 500 cash index was up 1.24%, rebounding from its largest single-day drop since April. The Dow gained 387 points (0.85%) and the Nasdaq outperformed with a 1.68% rally, led by battered technology stocks.

Will the Retracement Zone Hold or Break?

Today’s rally pushed futures back into a key retracement zone between 6676.25 and 6708.25, defined by the recent high at 6812.25 and low at 6540.25. Monday’s pre-market high stalled at 6706.25, signaling potential hesitation just below the top of this range.

Traders are watching 6708.25 closely—sustained trade above this level could trigger bullish continuation, while a rejection opens the door for a pullback toward the 50-day moving average at 6603.00. If that fails, downside targets lie at 6554.75 and the low at 6540.25.

Can Trump’s Messaging Keep Risk Appetite Alive?

Stocks rallied after Trump posted on Truth Social that trade with China “will all be fine,” backing away from Friday’s threat to implement a massive increase in tariffs. Vice President JD Vance reinforced the administration’s willingness to negotiate, though tensions remain unresolved.

While the rhetoric may have cooled near-term fears, markets remain sensitive to any signs of renewed trade pressure. Analysts note that Trump’s comments suggest investors are being invited to buy the dip—a strategy that has paid off throughout the year.

Which Stocks Are on the Move?

• Broadcom surged more than 12% pre-market after formalizing a partnership with OpenAI to deploy 10 gigawatts of AI accelerators.
• AMD, Nvidia, and Oracle each gained over 3% on tech-led strength.
• USA Rare Earth and Critical Metals jumped over 18% following Trump’s earlier threats against Chinese rare earth exports.
• Bloom Energy soared 26% after announcing a $5 billion deal with Brookfield Asset Management.
• Estee Lauder rose 4% on a Goldman Sachs upgrade, citing a 30% upside.
• Warner Bros. Discovery gained more than 4% after rejecting a takeover offer from Paramount Skydance.

Outlook: Can Bulls Reclaim the 6812.25 High?

If futures can sustain above 6708.25, bulls could regain momentum with 6812.25 as the next upside target. However, a breakdown below 6676.25 would shift the tone bearish again, particularly if 6603.00 fails to hold as support.

With earnings from major banks set to begin Tuesday and a government payroll deadline looming on October 15, traders should stay alert for headline-driven swings this week.

More Information in our Economic Calendar.