The Nasdaq 100 traded in a narrow range on Friday, caught between opposing forces within the technology sector. A defensive rotation saw investors moving capital away from volatile semiconductor stocks and into more stable software giants ahead of the weekend, resulting in indecisive sideways movement for the index.
Defensive Moves Ahead of Key Data
Market participants adopted a cautious stance, with trading volume dipping below the 30-day average. This shift reflects mixed economic signals. While November’s job cut data showed a significant decline, persistent inflation concerns continue to dampen expectations for imminent interest rate cuts by the Federal Reserve. In this environment, institutional money is flowing into perceived safer havens within the tech landscape.
A Sector Divided
The trading session revealed a clear divergence among major technology constituents. Shares of Apple, advancing 1.09%, and Microsoft, up 0.67%, provided crucial support and acted as stabilizing forces for the broader index. Their gains helped offset pronounced weakness emanating from the chipmaking sector.
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The semiconductor segment faced notable headwinds, primarily driven by cautious analyst commentary concerning the competitive landscape in the data center market. This pressured shares of Advanced Micro Devices (AMD), which fell approximately 2%. The decline dragged down industry peers, with Broadcom retreating 1.17%. Nvidia was a notable exception, managing to buck the trend and trade slightly higher.
Technical Perspective and Key Levels
From a chart analysis standpoint, the index appears to be in a consolidation phase, grappling with short-term exhaustion signals. Early trading activity encountered strong resistance around the 25,660-point level, halting upward momentum. On the downside, initial support has formed near 25,450 points. A breach of this level could see the index test its 20-day moving average around 25,300 points.
The final trading hour will be pivotal for the weekly close. Defending the 25,550-point mark is crucial. However, a closing price above 25,625 points would establish a more solid technical foundation ahead of next week’s key inflation data releases.
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