#Nasdaq100FallsInBackToBackWeeklyLoss $NVDAB $NVDA.US Refers to the Nasdaq-100 recording two consecutive weeks of declines, something that had not happened for several months. The weakness has been driven by a combination of market factors rather than a single event.
Key reasons behind the decline
• AI and semiconductor stocks sold off: Investors have become more cautious about the huge spending on AI infrastructure. Chipmakers and major technology companies faced heavy profit-taking ahead of earnings reports.
• Profit-taking after a strong rally: Many of the Nasdaq-100's largest companies had risen sharply earlier in the year, prompting traders to lock in gains.
• Macro uncertainty: Concerns over tariffs, interest rates, and geopolitical tensions increased market volatility and reduced investors' appetite for risk.
Technical outlook
• Short-term trend: Bearish to neutral.
• Momentum: Sellers currently have the advantage.
• Key support: If the index breaks below recent support, further downside is possible.
• Key resistance: A move back above recent resistance would be needed to confirm renewed bullish momentum.
What to watch next
• The next major drivers for the Nasdaq-100 are:
• Earnings from major technology companies.
• Guidance on AI spending.
• U.S. inflation and Federal Reserve policy signals.
• Any developments in global trade or geopolitical tensions.
Overall view: The recent weakness looks more like a market correction and profit-taking than confirmation of a long-term bear market. However, if upcoming earnings disappoint or macro conditions worsen, the Nasdaq-100 could experience additional downside before finding stronger support.