Diving into Nasdaq’s Rollercoaster Ride
As Nasdaq 100 took a nosedive by 1% at the beginning of the week, erasing previous gains post-Fed Chair Jerome Powell’s musings at Jackson Hole, investors found themselves riding a turbulent wave of uncertainty.
Monday’s lack of substantial news or data impacting tech stocks signaled a cooling down of the market’s risk appetite after a remarkable 14% surge since August lows.
Chips Down: Semiconductor Stocks Under Pressure
The tech realm witnessed two pivotal challenges on Monday, encapsulated by the decline in semiconductor stocks and the abrupt descent of PDD Holdings Inc.
Anticipating Nvidia Corp.’s upcoming earnings report due Wednesday, investors exercised caution around semiconductor stocks, which reflected in a 2.5% dip within the iShares Semiconductor ETF.
With semiconductor stocks comprising a substantial chunk of Nasdaq 100’s portfolio, their stumble alone accounted for a 0.7 percentage point plunge in the index’s performance.
Adding to the tech turmoil was China’s retail giant PDD Holdings, which plummeted by a staggering 28.5% due to lackluster earnings results, dragging the Nasdaq 100 down by an extra 0.25 percentage points.
Nasdaq 100 Negative Performance Contributors On Monday
The table below highlights the major companies contributing to the Nasdaq 100’s underperformance:
Chart: Tech Stocks Slip To 50-Day Moving Average Support
In a visual depiction, tech stocks found themselves testing the 50-day moving average support, indicating a precarious position amidst mounting pressures and uncertainties.
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Image created using artificial intelligence via Midjourney.