The Nasdaq is showing signs of weakness after its recent surge toward record highs. Profit-taking, especially at the end of the month, has weighed on tech stocks, while the broader market digests Powell’s dovish signals from Jackson Hole.
Despite optimism around potential rate cuts, valuations in the Nasdaq remain stretched, leaving the index vulnerable to corrections. Rising bond yields, even if off their peaks, are still creating headwinds for high-growth sectors.
Geopolitical concerns and renewed tariff discussions add another layer of uncertainty. At the same time, several heavyweight tech names have already reported earnings, removing a key driver of recent upside momentum.
Technically, the index is testing short-term support. If this level fails, a retracement toward 21,500 or even the 50-day moving average could follow. The daily chart has started to print rejection candles, hinting that buying pressure is fading.
While the long-term trend remains intact, short-term risks are building. Unless the Nasdaq can reclaim its highs quickly, a pullback looks increasingly likely as markets rebalance and investors take a more cautious stance.
Despite optimism around potential rate cuts, valuations in the Nasdaq remain stretched, leaving the index vulnerable to corrections. Rising bond yields, even if off their peaks, are still creating headwinds for high-growth sectors.
Geopolitical concerns and renewed tariff discussions add another layer of uncertainty. At the same time, several heavyweight tech names have already reported earnings, removing a key driver of recent upside momentum.
Technically, the index is testing short-term support. If this level fails, a retracement toward 21,500 or even the 50-day moving average could follow. The daily chart has started to print rejection candles, hinting that buying pressure is fading.
While the long-term trend remains intact, short-term risks are building. Unless the Nasdaq can reclaim its highs quickly, a pullback looks increasingly likely as markets rebalance and investors take a more cautious stance.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.