A wave of buying interest swept through the technology sector on Wednesday, overshadowing earlier investor anxiety ahead of Nvidia’s quarterly earnings report. The Nasdaq 100 not only posted substantial gains but also achieved a significant breakthrough on the charts, fueled by strong individual performances and a notable decline in market-wide risk aversion. This positions the index for a potential extension of its recent upward move.
Closing 1.41% higher at 25,329 points, the index secured its second consecutive day of advances. The session was characterized by a steady, unwavering ascent, signaling a high degree of conviction among market participants. This bullish sentiment was further underscored by a sharp 8% drop in the CBOE Volatility Index (VIX), which fell to its lowest level since early February. This plunge indicates a marked reduction in demand for portfolio protection.
Sector Movers and Standout Performers
Leading the charge was Axon Enterprise. Shares of the maker of Tasers and law enforcement equipment surged approximately 17.5% after the company delivered quarterly results that handily beat expectations. A 39% year-over-year revenue jump and optimistic management commentary regarding AI integration into its software business won over investors. Particularly compelling was the forecast that its software segment, powered by artificial intelligence, could soon outpace the growth of its hardware division.
Major technology giants provided additional momentum. Microsoft and Meta Platforms recorded solid gains, while Nvidia itself advanced 1.57% in the run-up to its own report. The semiconductor sector also benefited from ongoing strength in memory chips, boosting shares of companies like Western Digital.
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Notable Decliners Amid the Rally
The broad advance did not lift all stocks. CoStar Group fell more than 5% after its first-quarter 2026 outlook fell short of analyst estimates, despite posting solid results for the most recent quarter. Market experts responded swiftly by cutting their price targets on the real estate data specialist. A steeper loss was recorded by e-commerce platform MercadoLibre, which slid roughly 8% to become the index’s worst performer for the day.
Technical Breakthrough and Market Outlook
From a technical analysis perspective, bulls scored a crucial victory. For the first time since the sell-off in early February, the index closed above its closely watched 200-day moving average, situated around 25,249 points. To confirm this breakout, the index must now maintain its footing above the 25,200 level. The next area of potential resistance lies near Wednesday’s intraday high around 25,340 points.
After the closing bell, Nvidia reported earnings that modestly exceeded revenue and profit forecasts. Today’s trading session will be heavily influenced by the market’s assessment of the details surrounding margins and investment expenditures in its “hyperscaler” business segment. Weekly labor market data may also provide direction. Meanwhile, the technical reclamation of the 200-day line has established a solid foundation for further potential gains.
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