Nasdaq futures rise as AI rout pauses amid dip buying
Summary
Nasdaq futures increased during the morning session as the recent technology sector sell-off temporarily stopped. Investors stepped in to purchase shares at lower prices following the prior market declines.
Our Take
Thursday was a capitulation-style day: QQQ fell 6.5% and closed at $647.05, the low of the session, while the chip ETF SMH lost 11% and AI names like Micron (-17%), AMD (-17%) and Nvidia (-9%) took the heaviest hits. This morning's bounce is real but small next to that damage: QQQ is up about 1.5% premarket near $657, and NVDA, AMD and MU are up 4% to 8%. A close right on the low of the day often brings a reflex bounce, so the real test is whether buyers can hold it after the open.
Levels we're watching on QQQ: $660 (the premarket high) is the first test, and reclaiming it opens room toward $680, the bottom of Monday's range. On the downside, $647 is the line in the sand. Losing it would mean the bounce failed and the selloff isn't finished. Volume yesterday was more than double a normal day, so expect wide ranges and fast reversals today. This is a tape for smaller position sizes, not bigger ones.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at Stock Market News