Nasdaq 100 Analysis: Chip Stock Strength Fades as Key Resistance Zone Holds Firm

Nasdaq Tech Rally Spurs Late‐Session Momentum Ahead of Close

With an hour remaining in trading, U.S. stocks are showing a modest upside tilt. The Nasdaq Composite leads gains, buoyed by strength in select mega‑cap and semiconductor names. The Dow and S&P 500 are also inching higher, though sector rotation and mixed earnings news are keeping sentiment cautious.

Is the Nasdaq Breakout Near?

E‑mini Nasdaq‑100 futures are testing the critical retracement zone between 24,776.25 and 24,922.00—the 50%–61.8% retracement of the prior down‑move. Traders are watching closely: a sustained move above 24,922.00 would suggest renewed buyer conviction, while a slip below 24,776.25 could open the door to retests of the 50‑day moving average near 24,344.02 or even last week’s low at 24,158.50.

Which Stocks Are Powering the Nasdaq’s Upside?

AMD, KLA, Applied Materials surging
AMD continues to lead chip‑space gains, trading up about 8% intraday. KLA is up over 5%, while Applied Materials is adding nearly 4%. These names are reinforcing strength in the semiconductor subsector.

Broadcom, ASML, Meta rallying
Broadcom is up 2.65% and ASML has added 2.1%. Meta Platforms is up more than 1%, alongside gains in Alphabet shares, lending breadth to the rally beyond chip names.

Constellation Energy, PayPal holding ground
Outside pure tech, Constellation Energy is up 2.8%, and PayPal, though off its highs, remains relatively stable compared to broader weakness seen elsewhere in financials and consumer stocks.

How Are Other Sectors and Indexes Faring?

Sector rotation is in full view. Communication Services and Utilities are up around 0.9%–1.0%, helping boost the broader S&P and Nasdaq. In contrast, Industrials, Financials, and Energy are under pressure—down 0.4%, 0.1%, and 0.2%, respectively. The Dow is up about 0.2%, while the S&P 500 is flat to slightly positive.

Volatility is creeping higher: the VIX has ticked up to ~20.8, signaling that intraday traders remain cautious. Meanwhile, the longer government shutdown and unresolved trade tensions with China are weighing on sentiment, making the market more sensitive to late‑day headlines.

What Comes in the Final Hour?

If buyers can push and sustain Nasdaq futures above 24,922.00 in the closing hour, this may embolden further upside into tomorrow. However, failure to hold above 24,776.25 could unravel the rally, exposing short‑term support levels. With trade news, earnings updates, or macro surprises still on the table, traders will need to stay nimble.

Outlook: Watch the Nasdaq close — a decisive finish above the retracement zone would favor further gains, while a fade risks setting up a test of the lower technical zones.

More Information in our Economic Calendar.