Tech-Led Rally Propels Nasdaq 100 Past Key Resistance

A surge in semiconductor stocks fueled a significant advance for the Nasdaq 100, as the index convincingly broke through important technical barriers. The buying momentum, which built steadily throughout the session, marked a decisive shift from recent weaker trading days.

The rally was spearheaded by chipmakers, with investor sentiment buoyed by reports of new government initiatives aimed at reducing U.S. reliance on foreign semiconductor producers. GlobalFoundries led the charge, soaring 7.25%, while industry heavyweight Intel jumped 6.02%. Paccar also registered strong gains, advancing 5.20% on the back of new tariffs imposed on imported heavy-duty trucks. Other notable performers included:
• AppLovin: +2.99%
• Applied Materials: +2.61%

In a contrasting move, Oracle extended its recent downward trend, shedding 2.7%.

Technical Breakout Confirmed

From a technical perspective, the session was critical. The Nasdaq 100 found robust support within the 24,200 to 24,300 point range after dipping to an intraday low of 24,297.70. This triggered a powerful rebound that confirmed the validity of an established upward trend channel. Closing above the 50-day moving average provided a positive signal for near-term momentum.

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

The index traded within a range of 24,297.70 to 24,510.37 points, with the low established early in the morning. The subsequent climb demonstrated strong buyer conviction at a key support level.

Market Context and Outlook

Looking ahead, immediate resistance is seen at the day’s high of 24,510.37 points. A breach of this level would put the psychologically significant 25,000 mark in focus. Primary support continues to hold at the base of the trend channel, around the 24,000-point level.

Despite the bullish price action, underlying caution among investors was evident as the Volatility Index (VIX) climbed to 16.98. Market conditions were supported by a weaker U.S. dollar, which fell 0.4% to 98.15. However, the 10-year U.S. Treasury yield holding steady at 4.19% could act as a potential headwind for future gains.