Tech Rally Boosts Dow, Nasdaq and S&P Ahead of Trump China Visit

U.S. stock indexes erased earlier losses and rose on Tuesday, driven by gains in technology shares, after West Texas Intermediate crude eased and traders factored in President Trump’s planned visit to China next week. The Nasdaq, S&P 500 and Dow Jones Industrial Average all advanced during the session.

Markets steadied after reports that tensions in the Middle East had not escalated further. Traders shifted focus to the diplomatic meeting between President Trump and Chinese leader Xi Jinping; some market participants said they expect policymakers to avoid a major military operation before the summit. That expectation coincided with buying in growth-sensitive assets.

Technology companies and smaller semiconductor firms led the rally, with the Nasdaq moving past the 28,000 level. Bitcoin traded above $80,000 for the first time since January, about 36% above its yearly low. Analysts cited recent PMI readings, improving consumer sentiment measures and strong corporate earnings forecasts as factors supporting demand for risk assets.

On technical charts, the Dow did not fall below 49,000 during the recent pullback. Traders identified the four-hour 50-period moving average near 49,269 as a key level; a sustained break above it could push the index toward the 49,900–50,000 area and early-2026 highs, while a rejection could open the door to lower levels. Intraday support levels referenced by traders included the 49,000–49,100 pivot, momentum support near 48,500 and secondary support around 48,000. All-time highs were noted in the 50,400–50,544 range.

The Nasdaq’s rally surpassed the 28,000 mark, with potential resistance around 28,400 at the lower bound of its upward channel. Short-term support levels traders cited included 27,500 and the four-hour 50-period moving average near 27,000, while prior all-time-high areas provided further buffers in the 26,200–26,750 range.

The S&P 500 pressed toward last week’s highs near 7,280 and the upper channel boundary around 7,300. Near-term support referenced by market participants sat near channel lows at roughly 7,180 and the psychological 7,100 level, with broader downside pivots noted between 6,750 and 6,900.

Elior Manier, a market analyst at OANDA, wrote that traders have preferred buying into dips rather than selling on fear and recommended staying nimble as markets react quickly to headlines and technical breakouts.

Market participants cautioned that the current calm could be temporary. Observers advised watching WTI crude and geopolitical developments closely and flagged the possibility of a “buy-the-rumor, sell-the-news” reaction around the Trump visit. Analysts said long-term geopolitical and economic risks remain unresolved and could reintroduce volatility if conditions change.