English
Nasdaq 100
Nasdaq 100 drops over 1,000 points as tech stocks sell off
Post-election optimism gives way to heavy selling as investors rotate out of AI and semiconductor stocks into defensive sectors. For the Nasdaq 100, the 27,000 level becomes a crucial test.
The Nasdaq 100 has fallen more than 1,000 points on Thursday, 5 November, as concerns over the expansion of AI infrastructure weigh on technology stocks. Meanwhile, healthcare and consumer staples attract buyers. IG’s US Tech 100 cash indication trades at around 27,040 points in the afternoon. Failure to hold the psychological 27,000 level could open the way towards 26,000. A more meaningful recovery would require buyers to reclaim 27,800.
Why is the Nasdaq 100 falling today?
Following the Democrats’ election victory, investors fear tighter restrictions and potential delays in the construction of new data centres. These concerns add to existing doubts about whether the billions being invested in artificial intelligence will generate sufficient returns. Semiconductor manufacturers and companies involved in the AI infrastructure buildout are particularly exposed to the selling.
Out of tech and into defensive stocks: Healthcare companies and consumer staples are attracting demand as investors reduce their exposure to AI-related shares. This rotation suggests that earnings reliability is gaining importance. The influence of large technology companies is particularly visible: at one stage, a small majority of S&P 500 constituents advanced even as the overall index fell sharply.
Nasdaq 100 daily chart: 27,000 comes under pressure
The sell-off has pushed the Nasdaq 100 below its recent low around 27,500 points. The 27,000 level has also been briefly breached, making this psychological threshold a key area to watch for signs of stabilisation.
An RSI (34) reading below 48.5 would reinforce the weak momentum picture. However, the speed of the decline also leaves room for sharp technical rebounds. A bounce alone would need further confirmation before signalling a more durable recovery.
Nasdaq 100 daily chart: Sell-off puts 27,000 to the test
Nasdaq 100 short: Below 27,000, another 1,000-point drop is possible
A sustained break below 27,000, followed by a failed attempt to reclaim the level, would increase the risk of further losses. The 26,000 area would then become a potential downside target, representing another 1,000 points from the 27,000 threshold.
A swift recovery back above 27,000 would weaken the immediate bearish continuation signal.
Nasdaq 100 long: Reclaiming 27,800 could strengthen the recovery
Holding 27,000 could initially support a technical bounce. For a more meaningful improvement, however, buyers would need to reclaim and defend 27,800.
That would bring 28,000, followed by the area around 28,300, into view as the next potential resistance levels. A renewed move below 27,800 would weaken this recovery scenario.
| Scenario | Confirmation | Potential targets | Signal weakens if… |
|---|---|---|---|
| Short | Sustained break below 27,000, followed by a failed recovery attempt | 26,000 | The index reclaims and holds 27,000 |
| Long | Recovery above 27,800, with the level subsequently holding | 28,000 / 28,300 | The index falls back below 27,800 |
Nasdaq 100: Five Year Price Performance
Ready to start your trading journey?
Open an IG account now
Follow us online:
