The NASDAQ is now down more than 1,000 points, or -3.84%, at 25,801, with the session low reaching 25,753.93. Selling pressure accelerated following reports that Microsoft may look to tap the equity markets to help fund its expanding AI infrastructure investments, a development that has weighed on both the stock and the broader technology sector.
From a technical perspective, the decline has pushed the index below both its 100-hour and 200-hour moving averages, increasing the bearish bias in the short term. The next key support target comes at the 50% retracement of the rally from the April 21 consolidation low, which is located at 25,694.60. That level is reinforced by a cluster of swing highs and swing lows dating back to early May, making it an important battleground for buyers and sellers.
A decisive break below 25,694.60 would weaken the technical outlook further and could open the door for an extension of the downside momentum. The technical deterioration is occurring alongside a more challenging fundamental backdrop, including rising Treasury yields, higher energy prices, and renewed concerns about inflation. In addition, increasing commodity costs could raise the price tag of the ongoing AI infrastructure buildout, adding another potential headwind for technology companies already facing elevated capital spending requirements.
Looking at some of losers today, there are number of companies with declines of over 10%
