Nasdaq 100: Tech Stocks Stall While Bitcoin’s $100K Surge Grabs Headlines

What’s Driving the Market Today?

Wall Street’s main indexes remained mostly unchanged on Thursday following record highs in the previous session. The Nasdaq rose slightly to an intraday high as investors anticipated the U.S. monthly jobs report, scheduled for release Friday. Cryptocurrency markets were also in focus as Bitcoin broke past the $100,000 mark, fueling gains in related equities.

Tech Stocks: Tesla Shines, Others Struggle

Tesla stood out among large-cap stocks, rising 2.5% after two brokerages raised their price targets for the electric vehicle leader. Broader tech sentiment, however, remained muted. Gains in the S&P 500, Nasdaq, and Dow Jones from Wednesday’s record closes—boosted by Salesforce and Marvell Technology—failed to carry over into Thursday, as investors assessed stretched valuations across the sector.

Crypto Surge: Bitcoin’s Milestone Breakout

Cryptocurrency-related equities rallied sharply after Bitcoin surged past $100,000 for the first time. Coinbase climbed 4.4%, Marathon Digital Holdings gained 6.1%, and MicroStrategy advanced 8%. Despite these strong moves, the Nasdaq’s overall response was subdued, indicating caution among traders over speculative assets.

Airline Gains Lift Transport Index

Airline stocks surged as Southwest Airlines raised its revenue guidance, gaining 4.5%. American Airlines soared 10.6% after increasing its fourth-quarter earnings forecast. The strength in airlines pushed the Dow Jones Transportation Average up 0.4%, providing a bright spot in an otherwise flat market session.

Disappointments: Cybersecurity and Autos Hit Hard

Not all sectors saw gains. SentinelOne dropped 9% after missing earnings expectations, while Synopsys fell 6.6% on weaker revenue guidance linked to declining China sales. Automakers also struggled, with Ford sliding 2.5% following a downgrade to “underperform” by Wolfe Research.

Advancing issues narrowly outpaced decliners on both the NYSE and Nasdaq, signaling cautious optimism in the broader market.

Market Forecast: Where Could the Market Be Headed Next?

The market appears to be in a holding pattern ahead of Friday’s employment data, which could influence the Federal Reserve’s December policy decision. A stronger-than-expected jobs report may temper expectations for aggressive rate cuts, potentially weighing on equities. However, Bitcoin’s breakout and strength in growth stocks suggest pockets of bullish sentiment.

Near-term, the S&P 500 and Nasdaq may see modest upside, supported by tech resilience and strong corporate earnings. However, the broader market remains vulnerable to valuation concerns and rate uncertainty. Traders should monitor Friday’s labor report closely for further cues.