Nasdaq-100 Shows Technical Support as Semiconductor ETF Ends 8-Day Losing Streak
Major stock indexes showed signs of stabilization after weeks of volatility driven by higher interest rates, rising energy prices, and persistent inflation concerns. Despite pressure on artificial intelligence and chip stocks, market breadth broadened significantly into the close on Thursday, with advancing shares reaching 74.43% on the New York Stock Exchange and 59.41% on the Nasdaq-100 Index (NASDAQ:NDX).
Several technical indicators suggest selling pressure may be exhausting. The iShares Semiconductor ETF experienced an eight-session losing streak, its longest since 2010, while individual tech equities such as Advanced Micro Devices, Inc. (AMD), Micron Technology, Inc. (MU), and Nebius Group N.V. (NBIS) formed technical reversal patterns off support levels. Additionally, market sentiment indicators reflect widespread fear, which historically has coincided with market bottoms.
Investors are monitoring whether historical fourth-quarter seasonal patterns will take hold. Historical market trends show that October performance often strengthens during the second half of the month, with the Nasdaq historically averaging gains exceeding 3% during mid-term election years. Market participants will watch if broader participation across equities can sustain momentum past recent support levels.
Key points
- Advancing stocks accounted for 74.43% of NYSE issues and 59.41% of Nasdaq-100 shares late in Thursday's session.
- The iShares Semiconductor ETF logged its longest losing streak since 2010 after dropping for eight consecutive sessions.
- Shares of Advanced Micro Devices, Micron Technology, and Nebius Group printed hammer candlestick patterns off support levels.
- Historical data shows October stock performance typically strengthens during the second half of the month.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why did semiconductor stocks fall recently?
Semiconductor stocks faced pressure due to higher U.S. inflation concerns, debt worries related to neocloud companies, and advancing memory technology from Chinese competitors.
What technical indicators signal a market bottom for the Nasdaq-100?
Indicators include improving market breadth with over 59% advancers on the Nasdaq-100, gap-filling price action, hammer candles in key chip stocks, and extreme fear sentiment levels.
How does October historically perform in the stock market?
Historically, October strength often begins in the second half of the month. In mid-term election cycles, the Nasdaq averages returns exceeding 3%.