The resolution of the U.S. government’s budgetary standoff provided only momentary relief to investors before giving way to significant market turmoil. On Thursday, the Nasdaq 100 index plummeted more than 2%, closing at 24,993 points. Ironically, the conclusion of the record-setting 43-day shutdown triggered a widespread sell-off, driven by emerging concerns over critical missing economic data. This development raises questions about whether the technology sector’s prolonged period of optimism may be ending.
Vanished Economic Metrics Fuel Market Anxiety
A primary catalyst for the decline emerged from indications that the White House might never fully release key October employment and inflation statistics. This revelation struck financial markets with considerable force. The absence of these vital indicators leaves the Federal Reserve without essential guidance for its upcoming interest rate decisions, creating the kind of uncertainty that investors find particularly unsettling.
The consequence was a broad retreat from highly-valued technology giants. Reflecting this surge in market fear, the VIX volatility index jumped over 20% to reach 21.06 points. This dynamic created a textbook “sell the news” scenario, where the anticipated resolution of the government crisis became the signal for investors to secure profits.
Widespread Declines Across Technology Sector
Losses permeated the technology landscape, affecting numerous industry leaders:
Should investors sell immediately? Or is it worth buying NASDAQ 100?
- Tesla: Declined 6%, placing the electric vehicle innovator under renewed pressure
- Alphabet: Dropped approximately 5%
- Broadcom: Also shed about 5% of its value
- Nvidia: The AI chip leader retreated 4.2%
- Applovin: Finished as the session’s worst performer with a 5% decline
- Marvell Technology: Decreased by 4.2%
Entertainment conglomerate Walt Disney experienced particularly sharp losses, tumbling nearly 8% after reporting disappointing revenue figures. The sole notable positive development came from an unexpected source: network equipment provider Cisco Systems surged 4.5% upward following an improved profit forecast.
Technical Indicators Flash Warning Signals
From a chart perspective, the index breached a crucial support level at 25,380 points. Market technicians now identify the next significant defensive line at 24,600—a breach of this level could potentially trigger a full-scale correction. The failure to sustain momentum above the 26,000 threshold in late October, combined with the emerging pattern of successively lower highs, paints a concerning picture for bullish investors.
Simultaneously, yields on ten-year U.S. Treasury notes climbed to 4.12%, creating additional headwinds for growth-oriented technology equities. These pressures persisted despite a modest 0.3% decline in the U.S. Dollar Index, which provided no meaningful counterbalance to the day’s negative momentum.
Ad
NASDAQ 100 Stock: Buy or Sell?! New NASDAQ 100 Analysis from November 14 delivers the answer:
The latest NASDAQ 100 figures speak for themselves: Urgent action needed for NASDAQ 100 investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 14.
NASDAQ 100: Buy or sell? Read more here...
