Wall Street Extends Gains as Tax Cut Bill Lifts Sentiment, Tariff Risks Linger

Key Takeaways:
*Major indices continued to rise, buoyed by optimism from the passage of the “Big and Beautiful” tax cut bill aimed at stimulating economic growth.

*The White House signaled no new tariffs until August 1, granting extra time for negotiations—helping maintain risk appetite across markets.

*While equities remain supported, geopolitical and trade risks could inject fresh volatility in the sessions ahead.

U.S. equity markets continued to trade with an upbeat tone, shrugging off concerns over stronger-than-expected labor market data that could keep the Federal Reserve on a path of restrictive monetary policy. Last Thursday’s Non-Farm Payrolls (NFP) report showed a solid gain of 147,000 jobs, reinforcing expectations that the Fed may maintain its cautious stance in the near term.

Wall Street was buoyed by the passage of the much-anticipated “Big and Beautiful” bill last week, a sweeping tax cut package aimed at stimulating economic growth and supporting the business sector. The pro-growth policy has provided fresh momentum for equities, with major indices extending their record-breaking rally.

Investors, however, remain watchful over the ongoing trade negotiations between the U.S. and its key trading partners as the 90-day tariff truce approaches its expiration this week. While Vietnam has successfully reached a mutual agreement with Washington on the unilateral tariff plan, uncertainty still looms over larger economies including the Eurozone and China, casting a degree of caution across the risk asset landscape.

The White House has signaled that any new tariffs would only take effect from August 1 onward, effectively granting additional time for negotiations—a move that has helped ease immediate market concerns and kept risk appetite intact.

Technical Analysis

Nasdaq, H4

The tech-heavy Nasdaq extended its record-setting rally in the last session, climbing to an all-time high of 22,896.00—edging closer to the symbolic 23,000 mark. The index continues to display a resilient upward price pattern, with prices consistently supported above the prevailing uptrend line, reinforcing the bullish bias.

Momentum indicators also point to sustained strength. The Relative Strength Index (RSI) has entered overbought territory, while the MACD remains firmly above the zero line with a recent golden cross—both signaling that bullish momentum remains firmly in place.

With sentiment firmly tilted to the upside, traders are now watching for a potential break through the 23,000 level, which could open the door for further gains in the near term.

Resistance levels: 22, 870.00, 23,080.00
Support levels: 22,680.00, 22,400.00