Nasdaq 100 and S&P500: Tech Sector Rebound Lifts US Indices Off Session Lows

Dow Slumps While Nasdaq Rebounds as Traders Weigh Fed Path, Breadth Weakens

At 16:04 GMT, U.S. equities were mixed with the Dow down sharply while the Nasdaq attempted a modest rebound, reflecting growing tension between fading optimism around rate cuts and shaky technical underpinnings.

The Dow was lower by 329.97 points, or 0.70%, at 47,127.25. The S&P 500 slipped 0.10% to 6,730.98, while the Nasdaq edged up 0.12% to 22,897.25. Following Thursday’s sell-off — the worst single-day drop in over a month — today’s action looks more like indecision than conviction.

What’s Supporting Tech as Broader Sentiment Sours?

Technology led on Friday, with the sector up 0.49% after steep losses earlier in the week. Micron gained over 6%, DoorDash rose more than 5%, and Fortinet added 1.5%, helping the Nasdaq attempt a bounce.

Analysts at Citi pointed to their “When Generals Fail” indicator — referencing the Mag 7 — and noted only Meta is currently trading below its 200-day moving average, suggesting the broader trend for tech remains intact.

Still, the AI trade has lost some shine after Oracle’s steep drop earlier in the week raised questions about capex-heavy business models and extended valuations.

Which Sectors Are Under Pressure?

Most sectors were lower, reflecting weak market breadth. Materials fell 0.87%, Financials dropped 0.79%, and Communication Services lost 0.74%.

Consumer Staples and Health Care were also in the red.

Energy stood out on the upside, gaining 0.68% as oil names rallied.

Utilities posted a modest 0.45% gain, and Industrials were flat.

Overall, the lack of participation outside tech continues to concern traders looking for confirmation that the broader rally is still healthy.

What’s Driving Market Anxiety?

The sharp drop in Fed rate cut expectations is starting to bite. The odds of a December cut have dropped to just over 51%, down from nearly 63% earlier this week and 95.5% a month ago, according to the CME FedWatch Tool.

With inflation still sticky and several Fed officials pushing back on easing, traders are beginning to question whether policy support will arrive soon enough to justify risk-on positioning.

That’s rattled some of the bullish narrative tied to aggressive positioning in mega-cap tech and AI.

Key Stocks in Motion

Aside from Micron and DoorDash, other notable gainers included Constellation Energy (+3.97%), Workday (+3.69%), and Warner Bros Discovery (+3.41%). On the downside, Netflix slid 3.27%, Charter fell 2.53%, and PayPal lost 2.23%. Nvidia, which reports earnings next week, rose 0.72% and remains a major swing factor for both sentiment and sector direction.

Outlook: Eyes on Support Levels and Nvidia’s Earnings

Fundstrat’s Mark Newton emphasized the importance of key structural levels: 6,631 in the S&P 500 and 599 in the Nasdaq 100 ETF (QQQ). A break below those marks could open the door to deeper volatility before year-end.

For now, the trend remains broadly bullish, but soft breadth and cautious sentiment suggest that rallies will be tested.

Nvidia’s report on November 19 could prove pivotal for the tech space — and possibly the broader market — if it manages to restore confidence in the AI-led growth story.

More Information in our Economic Calendar.