The Nasdaq fell about 4.5% this week, while the Dow is still climbing. They’re both U.S. stocks—so why such a big difference? 👀
As of the close on October 16, U.S. Eastern Time, the Nasdaq Composite was down about 4.5% for the week, while the Dow Jones was up about 0.7%. If you’re heavily invested in tech stocks, this week may have felt a lot rougher than the market headlines suggest.
AI-related stocks, which had been driving the market higher, became a drag this time. CoreWeave fell about 12% on Friday, Nvidia dropped about 1.5%, and chip stocks remained under pressure.
The market is starting to ask: As more and more data centers are built, when will all that investment pay off? This is especially concerning for companies expanding with borrowed money. If investors become less optimistic about future revenue, debt and interest costs stand out all the more.
The Dow’s gains this week show just how differently various sectors are performing. It’s too soon to conclude that nobody is buying U.S. stocks just because the Nasdaq fell. But the Dow’s rise doesn’t prove that tech stocks have bottomed out, either.
I trade NQ, and next week I’ll first be watching to see whether tech stocks can stop falling. Even if the Dow keeps climbing, if the Nasdaq rebounds but still can’t get past its previous swing high, I won’t rush into a long just because “U.S. stocks are still strong.”
If the Nasdaq holds its low, breaks above its previous swing high on a rebound, and then pulls back without breaking below it, I’ll have a stronger case for going long. A big drop alone isn’t enough to justify an entry for me.
Do you think tech stocks can stop falling next week?
#纳指道指周度差距创2002年7月来最大
As of the close on October 16, U.S. Eastern Time, the Nasdaq Composite was down about 4.5% for the week, while the Dow Jones was up about 0.7%. If you’re heavily invested in tech stocks, this week may have felt a lot rougher than the market headlines suggest.
AI-related stocks, which had been driving the market higher, became a drag this time. CoreWeave fell about 12% on Friday, Nvidia dropped about 1.5%, and chip stocks remained under pressure.
The market is starting to ask: As more and more data centers are built, when will all that investment pay off? This is especially concerning for companies expanding with borrowed money. If investors become less optimistic about future revenue, debt and interest costs stand out all the more.
The Dow’s gains this week show just how differently various sectors are performing. It’s too soon to conclude that nobody is buying U.S. stocks just because the Nasdaq fell. But the Dow’s rise doesn’t prove that tech stocks have bottomed out, either.
I trade NQ, and next week I’ll first be watching to see whether tech stocks can stop falling. Even if the Dow keeps climbing, if the Nasdaq rebounds but still can’t get past its previous swing high, I won’t rush into a long just because “U.S. stocks are still strong.”
If the Nasdaq holds its low, breaks above its previous swing high on a rebound, and then pulls back without breaking below it, I’ll have a stronger case for going long. A big drop alone isn’t enough to justify an entry for me.
Do you think tech stocks can stop falling next week?
#纳指道指周度差距创2002年7月来最大
