The Dow Jones Industrial Average and Nasdaq 100 rallied off their Monday lows, but the bounce has stalled in early trading on Tuesday. After gapping lower to start the week, the Dow managed to rebound through Monday’s session. The index found buyers below 44,000, and while it dropped back from overnight highs on news that China would impose its own tariffs, it has so far avoided a renewed slump.
A close back above 44,500 would solidify the bullish view and put the price back on course to test 45,000. The Nasdaq 100 experienced a similar recovery. The overnight gap from Sunday was almost entirely closed by the end of Monday’s session.
Palantir lifts markets amid tariff woes
Strong earnings from Palantir provided an additional boost just as tariff fears began to fade. The past two weeks have seen strong buying around 21,000, so a close below this level is needed to suggest a more sustained weakness.
A recovery of 21,500 will then leave room to test the area below 22,000 that marked the highs in late January. The Nikkei 225 rebounded on Monday, though it suffered bigger overnight losses. The Sunday night fall took the index back to 38,500, where it once again found support, as it had done in mid-January.
Some tentative overnight buying has helped lift the index off its lows, but a close back above 39,000 is needed to suggest a more solid move higher. This market analysis underscores the mixed performance across major global indices, with the Dow and Nasdaq showing signs of recovery while the Nikkei 225 continues to struggle.