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US Indices Forecast for Q2 2025 – S&P 500, Nasdaq and Dow Dips Are a Buy Opportunity
Published: Apr 1, 2025, 13:02 GMT+00:00
US Indices continued to see selling pressures in Q1 due to tariff threats, geopolitical concerns, and fear of a US recession. However, Q2 could very well see a rebound if history tells us anything.
NASDAQ 100 Technical Analysis
Without a doubt, the NASDAQ 100 is going to be one of the more interesting indices to watch during Q2. Q1 has been an unmitigated disaster, and quite frankly it seems like sooner or later the buyers will return. Quite frankly, it’s not an equal weighted index, so you don’t have much success most of the time getting short.
That being said, there are a lot of concerns when it comes to growth at the moment, and that will have a major influence on what happens to the NASDAQ 100. However, over the longer term NASDAQ 100 does perform very well, so I would anticipate that sooner or later during Q2, the buyers will return. The real beginning of a sustainable rally is probably going to be once we get a little bit more clarity when it comes to tariffs. Quite frankly, we should have clarity by the end of Q2, because if we don’t Wall Street will have melted down. I am looking to be a buyer on this dip, but I need to see a sustainable balance on a weekly candlestick first.
S&P 500 Technical Analysis
The S&P 500 of course has struggled as well during Q1, and I think Q2 could bring a lot of noisy behavior. At the beginning of the quarter, I would anticipate that we probably have more of a base building project, meaning that we could go sideways for a while. As we close out Q1, it’s probably worth noting that the market is sitting right around the 50 Week EMA, which does tend to be somewhat important. If the market can break well above the 5800 level, then I think you have a real shot at the S&P 500 which rallied quite nicely.
That being said, I think that even if this market does take off to the upside, it is going to be a very choppy affair, unless we hear something along the lines of tariffs being sorted out or even canceled. Ultimately, this is not an equal weighted index either, so really at this point in time, although it doesn’t look very bullish, I’m certainly not comfortable shorting this market. It’s a matter of waiting for some type of traction on a bounce.
Dow Jones 30 Technical Analysis
Dow Jones 30 of course is struggling during Q1, and it has been a very rough quarter for all indices. The market looks as if it is trying to bounce from the 50 Week EMA, which is an indicator that a lot of people will be watching. That being said, the Dow Jones 30 could very well be one of the leaders in the United States, as tariffs from Donald Trump should in theory favor a lot of industrial manufacturing and these large blue-chip stocks. After all, if more manufacturing ends up going on in the United States, it stands to reason that the homegrown companies should do fairly well.
On a weekly bullish candlestick above the 43,000 level, it’s very likely that the Dow Jones 30 will not only rally but probably drag the rest of the indices right along with it. It’s worth noting that the Dow Jones 30 is a price weighted index, meaning that unlike the NASDAQ 100, a couple of stocks don’t necessarily move the entire index.
About the Author
Christopher Lewisauthor
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
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