NASDAQ Index Moves to Lowest Level Since September
Published by Greg Michalowski on October 19, 2023
Market Overview
The NASDAQ index has experienced a significant decline, falling below the low from Monday's trading session at 21,522.75, reaching a new low of 21,498.62. Currently, the index is down 430 points, or -1.96%, settling at 21,500. This marks the lowest level for the index since September 4, 2023.
Technical Analysis
The next major support levels for the NASDAQ index are identified between 20,931 and 21,033, which correspond to swing lows from September 2 and August 19. Should the index fall below these levels, further targets include 21,573 (swing low from July 30) and the 38.2% retracement level of the upward movement from the April 2025 low, which is at 20,491.
Sector Performance
Technology stocks have been particularly affected, with 13 out of the 20 worst-performing stocks in the S&P 500 today coming from the tech sector, especially semiconductor and electronics companies. The primary catalyst for this downturn is the ongoing U.S.-Iran conflict, which is impacting global supply chains and energy prices.
Key Stock Movements
- Ciena (CIEN): Down 10.58% due to insider selling, with SVP Brodie Gage reducing his position by 9.74%.
- Lam Research (LRCX): Down 9.11% amid concerns over potential supply chain disruptions for critical chipmaking materials, particularly helium.
- Meta (META): Down 8.14% after a jury found the company liable for contributing to a user's mental health issues, resulting in a $6 million damages award.
- Micron (MU): Down 7.33%, AMD: Down 6.79%, SMCI: Down 8.61%, WDC: Down 7.10%, INTC: Down 6.25%, TSM: Down 5.67% — all affected by rising energy costs linked to the Iran conflict.
- Trump Media (DJT): Down 5.17%, continuing its decline without a specific catalyst, reflecting a general risk-off sentiment in the market.
Conclusion
The NASDAQ index's decline reflects broader market concerns driven by geopolitical tensions and their impact on the technology sector. Investors are advised to monitor key support levels and sector performance closely as the situation evolves.