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Nasdaq 100 Faces Worst One-Day Drop in Years
The Nasdaq 100 index saw a steep 4% decline, closing at 17,468.32, marking its worst trading session since 2022. The technology-heavy index suffered a broad-based sell-off as investor sentiment turned bearish amid fears of rising interest rates, economic slowdown, and increased geopolitical tensions.
Big Tech Meltdown: FAANG Stocks Plummet
FAANG stocks—Meta (Facebook), Amazon, Apple, Netflix, and Alphabet (Google)—were all deeply impacted. These stocks, which had been leading the market rally over the past year, saw significant losses:
- Meta (META): Declined 6.5%, erasing billions in market cap.
- Amazon (AMZN): Fell 4.2% amid concerns over slowing consumer spending.
- Apple (AAPL): Dropped 5.1%, continuing its downtrend due to weaker iPhone sales.
- Netflix (NFLX): Plunged 7.3%, its worst single-day drop in over a year.
- Alphabet (GOOGL): Slipped 4.8% as AI-related concerns weighed on sentiment.
Technical Analysis: Key Nasdaq 100 Support and Resistance Levels
- Immediate Resistance: 19,430 – If the index rebounds, this will be the first major hurdle.
- Key Resistance Above: 19,896 – A break above this level could reverse the downtrend.
- Major Support Levels:
- 19,164 – This level failed to hold during the sell-off, confirming bearish momentum.
- 18,432 – A crucial support level; a breakdown could trigger further losses.
- 17,445 – The next major support, aligning with last year’s lows.
Why Is the Nasdaq 100 Falling?
The sharp decline in the Nasdaq 100 is largely due to rising interest rates, weak earnings reports, and uncertainty in the tech sector.
Several major tech companies have posted disappointing earnings and issued weaker forward guidance, leading to a sell-off and traders pulling out of riskier assets.
Cooling enthusiasm around AI and high-valuation tech stocks was previously a major driver of market gains.
Geopolitical tensions and economic concerns, particularly China’s slowdown, have further exacerbated investor anxiety.
Rising bond yields are making risk-free assets like Treasuries more attractive, prompting a shift away from equities.
Final Thoughts
The Nasdaq 100’s sharp decline signals a major shift in market sentiment, with tech stocks under pressure amid growing uncertainty. Traders should remain cautious, monitor key technical levels, and adjust their strategies based on market conditions.