Nasdaq Index: Intel Reversal Tests Nasdaq Support as Apple Lifts the Dow

Apple Props Up the Dow but Chips Drag Nasdaq

The Dow found buyers Friday and the Nasdaq did not. Apple carried the blue chips higher while semiconductor sellers took back control of the growth side after Intel reversed an early earnings-driven gain and closed sharply lower. The S&P 500 finished nearly flat as the two sides of the market canceled each other out. The Nasdaq could not follow because the chip group that has been carrying the AI trade all year gave back ground across the board. Lower crude and easing Treasury yields helped the Dow and S&P 500 recover from Thursday’s selloff.

The Dow Jones Industrial Average rose 235.60 or +0.46% to close at 51,947.25. The S&P 500 finished nearly unchanged at 7,411.98, up 0.05%. The Nasdaq Composite fell 0.64% to 24,975.82.

For the week, the Nasdaq dropped 2.1% for its second straight decline, the S&P 500 lost 0.6% for back-to-back losing weeks and the Dow fell 0.4% for its third consecutive lower week.

Apple Buyers Step In Ahead of Earnings

Apple rose 3.5% Friday and did more than any other name to support the Dow. The stock is large enough in the S&P 500 and Nasdaq to soften the damage from the chip selling and it was the one heavyweight buyers were willing to own ahead of next week’s earnings while the rest of large-cap technology broke down around it.

Apple rose to within striking distance of its all-time high at $334.99, nearly erasing four days of losses and pulling away from Thursday’s bottom at $319.35. A break under that level would be a sign of weakness and could lead to a decline into the 50-day moving average at $306.23.

Intel Weakness Dragged the Chips Lower

Intel fell nearly 8% after reversing an early gain tied to better-than-expected second-quarter results. Revenue rose 25% from a year earlier and adjusted earnings beat estimates. Buyers showed up before the bell and left once the cash market opened. That was the tell. The report was strong but the market is demanding free cash flow proof before it rewards another AI spending story with a higher valuation.

Looking at the daily chart, Intel’s plunge brought the stock back to nearly 50% of its rally from $40.63 to $142.35, landing near $91.49 with the session low at $91.58. A break under the recent swing bottom at $89.59 reaffirms the downtrend and puts the 61.8% level at $79.49 on the radar. Recovery requires getting back above the 50-day moving average at $115.27.

Broadcom, AMD and Micron all fell between 2.7% and 7% with Micron leading the selling. The VanEck Semiconductor ETF dropped 3% as the damage spread across the group. Memory stocks were especially weak and when the leaders start giving back ground after a run like this, the problem is usually positioning. Late buyers are sitting on gains and sellers know it.

Stocks in the News

Digital Realty jumped 11% after raising its full-year outlook. The materials group had the best session of any sector with International Paper, Smurfit WestRock and Packaging Corp all gaining between 8.8% and 11.2% as containerboard price increases drove the bid.

Lower Crude Gave Stocks Room to Recover

Crude pulled back Friday after the sharpest weekly run since the war started. Reports that Pakistan is exploring renewed U.S.-Iran talks with China’s support gave sellers a reason to book profits but the Middle East risk has not gone away heading into the weekend.

Daily Nasdaq Composite Technical Analysis

The Nasdaq Composite settled in a weak position after closing below the June 9 bottom at 24,980.38. The daily chart leaves room to the downside, with the 200-day moving average at 23,943.10 the first target, followed closely by the long-term 50% level at 23,940.23. If this support cluster fails to hold, focus could shift to the 61.8% level at 23,173.24.

What to Watch

Next week’s earnings calendar is heavier than this week’s. Microsoft, Amazon, Meta and Apple all report next week. The market needs those numbers to show that AI spending is producing enough revenue and cash flow. Strong revenue alone was not enough and the names reporting next week carry bigger expectations and bigger valuations.

Apple gave the Dow a bid Friday and the chip group gave the Nasdaq a problem. Next week determines whether technology buyers come back or whether Friday’s selling was the start of something larger.

The Nasdaq closed below a key swing bottom and the daily chart has room to the downside with the 200-day average and a major support cluster well below current levels. Apple is near its all-time high but Intel is back near the midpoint of its rally and the semiconductor group needs to stabilize before the index can recover. The direction next week depends on whether the earnings calendar can give technology buyers a reason to come back.

More Information in our Economic Calendar.