The index falls more than 1,000 points amid concerns over Microsoft’s potential equity market funding for AI infrastructure expansion.
The NASDAQ plunged 3.84% to 25,801, hitting a session low of 25,753.93, as selling pressure intensified following reports Microsoft may seek equity funding for its AI infrastructure investments. The decline has weighed on the broader tech sector, pushing the index below key moving averages and increasing short-term bearish sentiment.
The index has breached its 100-hour and 200-hour moving averages, with the next critical support at 25,694.60, a level reinforced by historical swing highs and lows. A break below this threshold could signal further downside momentum, compounded by rising Treasury yields, higher energy prices, and inflation concerns.
Fundamental headwinds include elevated capital spending demands for AI infrastructure, with rising commodity costs potentially inflating expenses. The technical breakdown aligns with broader macroeconomic challenges, adding pressure on technology stocks.