Nasdaq Index: Forecast Points to Further Losses as Tech Stocks Break Support

Nasdaq Composite Slips Below Key Support as Tech Shares Retreat

The Nasdaq Composite is trading lower on Friday after giving up early gains. The intraday bearish flip at 23585.96 has driven the index to the weak side of the 50-day moving average at 23250.85 and into a short-term pivot at 23178.58.

Critical Pivot at 23178.58 Could Trigger Further Downside

A failure at the pivot could create the downside momentum needed to extend the selling into another pivot zone at 22959.14 to 22798.61. The latter is the last potential defense before the swing bottom at 22692.00.

Bulls Eye Mid-Session Recovery Above 50-Day Moving Average

The best hope for bullish traders into the mid-session is to hold the 50% level at 23178.58 and to attempt to recover the 50-day MA. This move would then offer the best chance of an unchanged market into the close.

Sustained Break Below 23178.58 Threatens Extended Losses

The worst scenario today would be a sustained move under 23178.58, which would put the tech-heavy index in a position to extend the mid-day losses into the close and perhaps into early next week.

Top Nasdaq Movers: Applovin Tumbles While ASML Surges

The top Nasdaq decliners ahead of the mid-session are Applovin (-8.129%), Intuit (-4.804%), Workday (-4.642%), Adobe (-3.857%) and Palantir Technologies (-3.499%).

Bucking the trend and moving higher are shares of ASML Holding (+8.024%), Micron Technology (+7.855%), Intel (+7.223%), Western Digital (+6.783%) and Marvell Technology Inc (+5.595%).

Broader Market Shows Mixed Performance as Dow Gains

Broadly speaking, the U.S. stock market’s overall performance on Friday is mixed. At 16:40 GMT, the blue chip Dow Jones Industrial Average is 48186.15, up 122.86 or +0.26%. The benchmark S&P 500 Index is 6842.58, down 2.92 or -0.04% and the Nasdaq Composite is trading 23205.621, down 36.369 or -0.16%.

Sector Rotation: Industrials Lead Gains as Consumer Discretionary Lags

Sector performance is also on the mixed side. The positives are led by Industrials (+1.31%), Utilities (+1.03%) and Energy (+0.96%). On the negative side, Consumer Discretionary (-1.04%) and Communication Services (-1.04%) are the weakest, followed by Financials (-0.22%).

Semiconductor Stocks Rally as Nvidia and Micron Lead Tech Rebound

Heading into the mid-session on Friday, there doesn’t seem to be any particular theme to today’s trade; however, we’re seeing some demand for semiconductors led by gains in Nvidia (+1.00%) and Micron Technology. Last year, with artificial intelligence-related names winning big, Nvidia jumped 39%, while Micron surged more than 240%.

2026 Market Outlook: Rotation Expected Between Tech and Non-Tech

Experts are predicting several themes to emerge in 2026 besides the tech-related. They see ongoing rotation between tech and non-tech, but with broad-based strength in the S&P 500.

Trump Tariff Postponement Lifts Home Goods Retailers

In other news, President Trump’s postponement of tariff increases on upholstered furniture, kitchen cabinets and vanities for a year is seen as favorable for shares of Wayfair (+0.8%) and RH (+0.06%).

Market Outlook: Mixed Performance Expected Into Close

Look for the mixed performance to continue into the close unless there is a late-session recovery in technology shares. We’ll get a better look at the early themes in the market next week when volume levels return to near normal.

More Information in our Economic Calendar.