Nasdaq 100: Marvell Drops 16% Today as Tech Stocks Slide and PCE Data Hits Sentiment

Nasdaq 100 Eases Below Resistance; Eyes Support Near 50-Day SMA as Inflation Stays Hot

 

Nasdaq 100 futures pulled back sharply on Friday, snapping a two-day rebound and erasing most of this week’s gains as traders rotated out of tech and reacted to sticky inflation data. The index closed down 1.29%, settling at 23,462.75 after failing to hold Thursday’s high near 23,800.

Friday’s selling comes after the index hit a record 24,068.50 earlier this month, only to retreat and test support near 23,035 last week. The 50-day simple moving average (SMA), currently at 23,223, continues to offer short-term support, while the longer-term 200-day SMA remains well below at 21,705, underscoring the broader bullish trend still intact.

How Is the Fed’s Inflation Gauge Shaping Rate Cut Bets?

The July core PCE reading rose 2.9% year-over-year, in line with expectations but higher than the prior month. While this data keeps hopes alive for a potential September rate cut, it also signals persistent inflation pressures, leaving the Fed in a wait-and-see position.

According to Morgan Stanley’s Ellen Zentner, unless labor market weakness becomes more pronounced, the Fed may hesitate to ease aggressively. Next week’s non-farm payrolls report could be a key trigger for near-term rate expectations.

Semiconductors Lead Nasdaq 100 Decline as AI Trade Cools

Tech stocks, particularly semiconductors, weighed heavily on the index. Marvell Technology dropped nearly 16% after guiding Q3 revenue below estimates. Nvidia fell 2.8%, extending its pullback on concerns over China chip sales after Alibaba announced a competing AI processor. AMD, Lam Research, and Broadcom also saw 3%+ losses, pressuring the Philadelphia Semiconductor Index.

With the Nasdaq 100’s rally increasingly tied to AI optimism, any cracks in the semiconductor story are being punished, especially as valuations remain elevated.

Where Are Traders Finding Relative Strength?

Defensive plays offered limited shelter. Consumer staples and health care names like PepsiCo, Keurig Dr Pepper, and Amgen posted modest gains. However, Industrials and tech were broadly weaker. Caterpillar dropped 2% after warning about a tariff-related earnings hit, while Dell sank 9% following a soft outlook.

Utilities and real estate held steady, suggesting traders are balancing risk heading into September—a historically weak month for stocks.

Is Nasdaq 100’s Uptrend at Risk?

The index continues to hold above key technical levels, with the 50-day SMA acting as near-term support. A break below 23,200 could open downside toward 22,775. But as long as 23,000 holds, the pullbacks may be viewed as consolidation within a larger uptrend.

Traders should monitor September’s economic calendar closely. Friday’s jobs report and next week’s ISM releases could determine whether the Nasdaq 100 retests 24,000 or slips back toward 22,500.

More Information in our Economic Calendar.