Nasdaq 100: Sellers Take Control as Tech Stocks Drag US Indices Today – Forecast & Analysis

Nasdaq-100 Fails at 50-Day MA as Selling Pressure Builds

March E-mini Nasdaq-100 Index futures are lower at the mid-session on Thursday after failing to cross over to the bullish side of the 50-day moving average at 25456.00. This solidifies this indicator as the major trend indicator for this futures contract.

In addition to the moving average, long-term 50% resistance is at 25411.75 and intermediate-term 50% resistance is at 25294.50. The rejection at these key levels created enough downside momentum to drive the index through a trend line at 25112.50. This is new intraday resistance.

E-mini Nasdaq Rejected by 50-Day MA

The new short-term range is 24239.75 to 25494.75. Its pivot at 24867.25 was successfully tested earlier today. A failure to hold this 50% level could create enough downside momentum to challenge the 200-day moving average at 24510.75. This indicator was recently tested on February 17 at 24449.25 and on February 6 at 24239.75.

The 50-day MA at 25456.00 and the 200-day MA at 24510.75 have formed a mid-point at 24983.50. Traders should treat this mid-point as a directional pivot. The index is currently trading on the weak side of the pivot, indicating selling pressure.

Major Indexes Lower as Tech Leads the Decline

The major U.S. stock indexes are lower at the mid-session on Thursday with the Nasdaq Composite taking the biggest hit, falling 1.53% to 22,796.76. The S&P 500 dropped 0.87% to 6,885.05 while the Dow Jones Industrial Average held up better, slipping just 0.23% to 49,369.88.

February has been a choppy month with the major indexes swinging sharply between gains and losses as sentiment toward AI and technology stocks continued to waver. At one point during the month, investors pulled money out of high-flying AI stocks and into “Old Economy” blue chip companies. This drove the Nasdaq lower and the Dow into record highs over 50,000.

Tech and Communication Services Take the Biggest Hit

Tech and communication services took the biggest hits among the 11 S&P 500 sectors. Financials bucked the trend with a 0.8% gain. Energy stocks also climbed 0.9% after crude oil prices reversed their initial declines and moved more than 1% higher.

Banks and Consumer Stocks Find Buyers

Breaking down the sectors further, big banks were among the session’s bright spots, with Morgan Stanley, Goldman Sachs and Citigroup each rising nearly 1%. Consumer companies J.M. Smucker jumped 6% after beating third-quarter expectations and announcing a board deal with activist investor Elliott Investment Management. Celsius Holdings gained 7.3% on stronger than expected fourth-quarter revenue.

C3.ai and Trade Desk Get Hammered

On the downside, C3.ai tumbled 20% after forecasting weak current-quarter sales and announcing a 26% workforce reduction. Trade Desk fell 5% on disappointing first-quarter revenue guidance.

Geneva Talks Could Move Markets into the Weekend

Investors were also keeping one eye on Geneva where the latest round of U.S.-Iran nuclear talks could move both crude oil and stocks heading into the weekend.

More Information in our Economic Calendar