Tech Stocks on Edge as Key US Jobs Data Looms

Futures for the Nasdaq 100 pointed lower early Friday, signaling a tense start for the technology-heavy index. Contracts were down 171 points, or 0.69%, trading at 24,585 as investors braced for the imminent release of the U.S. employment report. This pre-data anxiety compounds existing pressure from a sharp spike in oil prices, which has reignited inflation fears. The Dow Jones Industrial Average’s steep 785-point drop on Thursday, with losses briefly exceeding 1,100 points, set a grim tone, though the Nasdaq 100 proved relatively more resilient even as it surrendered its gains from the previous session.

Geopolitical Tensions Fuel Commodity Surge

A significant military escalation in the Middle East is the primary driver of current market volatility. The launch of a U.S.-Israeli operation against Iran on February 28th has sent shockwaves through energy markets. The price of Brent crude climbed to $85 per barrel, reaching its highest level since the summer of 2024. Meanwhile, West Texas Intermediate (WTI) oil surged by 18% in the first week of March, surpassing $81.

This commodity shock has triggered a swift reassessment of the interest rate outlook. The yield on the benchmark 10-year U.S. Treasury note rose to 4.14%, a three-week high. Market expectations for Federal Reserve rate cuts have been dramatically scaled back, with traders now pricing in only 35 to 40 basis points of easing this year, down from previous forecasts of 60 basis points. The CBOE Volatility Index (VIX), often called the “fear gauge,” jumped nearly 20% to 23.78 points. Many market participants now doubt any policy move will occur before October 2026.

Broadcom Shines with Stellar AI-Driven Results

Amid the broad market sell-off, Broadcom emerged as a standout performer. The semiconductor giant reported record first-quarter revenue of $19.3 billion, a 29% year-over-year increase. Earnings per share came in at $2.05. In after-hours trading, Broadcom’s stock advanced approximately 5.3%, moving from $317.53 to around $334.

The most striking figure was the performance of its AI chip division, where revenue exploded by 106% to $8.4 billion. For the second quarter, CEO Hock Tan projected revenue of approximately $22 billion, significantly surpassing analyst expectations of $20.4 billion. This bullish outlook prompted Goldman Sachs and J.P. Morgan to raise their price targets on the stock. Tan further captured attention by forecasting that the company’s AI chip sales could surpass the $100 billion mark by 2027. While Broadcom provides fundamental strength, its ability to counter the index’s downward trend will largely depend on broader macroeconomic developments.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Technical Picture Shows Vulnerability

The Nasdaq 100’s technical posture had weakened even before the latest geopolitical crisis. Since hitting a January peak of 26,054 points, the index has been forming a descending triangle pattern. A bearish signal was confirmed when it broke below its 200-day moving average, situated at 24,106. The Relative Strength Index (RSI) currently reads 45.33, indicating a neutral-to-weak momentum. Trading within a 52-week range of 16,542 to 26,182 points, the index now sits in its lower third. Immediate resistance is seen at Thursday’s high of 25,174, followed by 25,500. Key support lies around the 24,000 level, which is viewed as a critical structural floor.

Major Tech Names Face Sustained Pressure

Wednesday’s brief rebound, which saw Advanced Micro Devices (AMD) gain 5.5%, Micron Technology rise 5.6%, and Amazon climb 3.9%, proved short-lived. By Thursday, most of those gains had been erased.

Amazon has been struggling for weeks, with its shares declining 12.24% in February from $226.50 to $210. Tesla is under particular strain, reporting a dramatic 45.2% plunge in UK vehicle sales for February to just 2,208 units. The list of decliners reads like a who’s who of the technology and growth sectors, including Nvidia, Alphabet, TSMC, Meta Platforms, Apple, Eli Lilly, and JPMorgan Chase, reflecting a market that is harshly punishing growth-oriented assets.

All Eyes on the Labor Market Report

The direction for the session will be decided at 14:30 CET with the release of the U.S. non-farm payrolls report. Economists anticipate the economy added 55,000 jobs outside the farming sector in February, a sharp slowdown from January’s 130,000. The unemployment rate is expected to hold steady at 4.3%. A positive surprise came from the earlier ADP employment report, which showed private sector hiring increased by 63,000, marking the strongest growth since November.

A robust labor market reading could bolster the argument for an economic soft landing and help stabilize technology valuations. Conversely, weak jobs data combined with persistently high oil prices could put the Nasdaq 100’s 24,000 support level firmly in the crosshairs. While Broadcom’s fundamentals provide a tailwind, its capacity to outweigh geopolitical and inflationary headwinds will be tested in the coming hours.