Nasdaq 100 Falls 1%, Tests 50-Day Average Support: Tech Stocks In Flux On Monday

The week started on a sour note for the Nasdaq 100, which slipped by 1%, erasing the gains made last Friday when the index rallied following Fed Chair Jerome Powell‘s hint at a possible rate cut during his much-anticipated speech at Jackson Hole.

Monday brought no significant news or economic data directly impacting tech stocks, reflecting a cooling of risk sentiment after the tech-heavy index had surged over 14% since its August lows.

Two main factors weighed on the Nasdaq 100 on Monday, as tracked by the Invesco QQQ Trust QQQ: the decline in semiconductor stocks and the sharp plunge in PDD Holdings Inc PDD.

Investors took a cautious stance on semiconductor stocks ahead of the highly anticipated earnings report from Nvidia Corp. NVDA, set to be released Wednesday after the market close.

A basket of chipmaker stocks, as tracked by the iShares Semiconductor ETF SOXX, dropped 2.5% on Monday, unable to hold above its 200-day moving average.

Since semiconductor stocks represent nearly a quarter of the Nasdaq 100’s portfolio, they alone accounted for a 0.7 percentage point drop in the index’s performance for the day.

The other significant drag on the index was the Chinese retail giant PDD Holdings, which plummeted by 28.5% on disappointing earnings results, dragging down the Nasdaq 100 by an additional 0.25 percentage points.

Nasdaq 100 Negative Performance Contributors On Monday

Company	Weight (%)	1-day return (%)	Contribution (pp)
PDD Holdings Inc.	0.62	-28.52	-0.25
Broadcom Inc. AVGO	5.15	-4.03	-0.21
NVIDIA Corporation NVDA	8.24	-2.26	-0.19
Tesla, Inc. TSLA	2.75	-3.22	-0.09
Microsoft Corp. MSFT	4.76	-1.3	-0.06

Chart: Tech Stocks Slip To 50-Day Moving Average Support

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Image created using artificial intelligence via Midjourney.