Nasdaq 100 Today: Volatility Grips Tech Stocks as U.S. Market Struggles for Stability

U.S. Stocks Rebound as Tech Shares Recover; Traders Await Key Economic Data

U.S. stocks are mixed on Wednesday, recovering from the previous session’s losses as tech shares stabilized following a weak start to September.

The Dow Jones Industrial Average was supported by gains in UnitedHealth and Goldman Sachs, both up over 1%. McDonald’s and Boeing also contributed, with Boeing rising 2.6%.

Nvidia rose 1.5%, reversing earlier losses after the U.S. Department of Justice subpoenaed the chipmaker in an antitrust investigation. Nvidia had dropped more than 9% on Tuesday as semiconductor stocks pulled back.

At 15:32 GMT, the Dow Jones Industrial Average is trading 40991.49, up 54.56 or +0.13%. The S&P 500 Index is at 5526.28, down 2.65 or -0.05 and the Nasdaq-100 Index is trading 17120.87, down 15.43 or -0.09%.

Job Openings and Trade Deficit Data

Economic reports showed U.S. job openings for July at 7.7 million, below the 8.1 million expected by economists. This marked the lowest level since 2021, with declines in the health care and government sectors leading the drop. The slowdown in job openings adds to concerns over labor market softness, which could impact future Federal Reserve policy.

Meanwhile, the U.S. trade deficit widened to $78.8 billion, the largest in over two years, though slightly below forecasts. The deficit with China expanded significantly, jumping by $4.9 billion to $27.2 billion in July. While the overall deficit was smaller than expected, the increase in the China shortfall raised concerns about the global trade environment.

Energy Sector Pressured as Oil Prices Fall

U.S. crude oil prices fell below $70 per barrel, hitting a nine-month low. The nearly 1% decline follows a 4% drop on Tuesday, with the benchmark trading at $69.19 earlier in the session. The slide in oil prices comes amid uncertainty over demand growth and speculation that OPEC+ could delay upcoming production increases. Analysts noted that until OPEC+ clarifies its strategy, bearish sentiment could dominate the energy market.

Retail Stocks Mixed Amid Earnings Reports

Dollar Tree plunged nearly 11% after missing second-quarter revenue estimates and cutting its full-year profit forecast. The retailer now expects adjusted earnings between $5.20 and $5.60 per share, down from the previous estimate of $6.50 to $7. Meanwhile, Dick’s Sporting Goods posted better-than-expected earnings and raised its full-year guidance but saw its stock fall slightly.

Bitcoin Sees Overnight Sell-off

Bitcoin dropped below $56,000 during overnight trading but stabilized around $56,481 by Wednesday afternoon, down more than 2%. The cryptocurrency’s decline followed a broader market sell-off earlier in the week. Coinbase and MicroStrategy shares fell 3% and 2%, respectively, in response to Bitcoin’s weakness.

Market Outlook

As traders await Friday’s U.S. employment report, markets are expected to remain volatile. Economic data, particularly related to the labor market, will be crucial in guiding the Federal Reserve’s next moves. Investors are bracing for potential pullbacks but may view any significant decline as a buying opportunity in the weeks ahead.

Technical Analysis

E-mini Nasdaq-100 Index futures are lower, but trading on the weakside of the pivot at 19167.50 and below the 50-day moving average at 19595.80.

The pivot will determine the direction of the index into the close, while the 50-day MA controls the intermediate trend.

If the downside momentum continues then look for the selling to extend into the 200-day moving average at 18532.60.