The Nasdaq is now down more than… 1000 points or -3.84% at 25801with the session reaching a low level 25,753.93. Selling pressure accelerated after reports that Microsoft may look to tap stock markets to help fund its growing investments in artificial intelligence infrastructure, a development that has affected both the stock and the broader technology sector.
Technically, the decline pushed the index Below the 100 hour and 200 hour moving averagesWhich increases the downward bias in the short term. The next major support target comes at 50% retracement of the rally from the April 21st consolidation lowwhich is located in 25,694.60. This level is reinforced by a set of highs and lows dating back to early May, making it an important battleground for buyers and sellers.
Crucial break below 25,694.60 That would weaken the technical outlook further and could open the door to an extension of the bearish momentum. Technical deterioration occurs alongside a more challenging fundamental backdrop, including… Treasury yields rise, energy prices rise, and renewed concerns about inflation. Additionally, increasing commodity costs could raise the price of continued construction of AI infrastructure, adding another potential headwind for technology companies that already face high capital spending requirements.
Looking at some of today’s losers, there are a number of companies that posted declines of more than 10%.
