Nasdaq 100: Global Chip Selloff Threatens 50-Day MA Support
Author: James Hyerczyk
Published: July 07, 2026
Key Points
- Nasdaq 100 futures are currently testing the 50-day moving average as traders evaluate support levels.
- A significant selloff in global chip stocks has put pressure on Nasdaq 100 futures ahead of the U.S. market opening.
- Traders are closely monitoring the U.S. trade balance report as markets test critical technical support and momentum.
Market Overview
On Tuesday, S&P 500 futures are trading lower, while Dow futures have seen a slight increase following a record close above 53,000. However, Nasdaq-100 futures have dropped due to a widespread selloff in semiconductor stocks across major markets. Notably, Samsung's shares fell by 9% despite reporting record profits, and SK Hynix saw a decline of over 10%, contributing to the overall selloff in the Kospi index.
Impact of Semiconductor Stocks
The selloff affected major chip-producing companies globally, with significant losses reported by Tokyo Electron, SoftBank, and Taiwan Semiconductor. In Europe, ASML, Infineon, and STMicroelectronics also experienced declines. This uniform exit from chip stocks indicates that market positioning was overly optimistic prior to the selloff, leading to a broad retreat regardless of individual company performance.
Technical Analysis
The Nasdaq-100 futures absorbed the overnight losses, raising questions about whether U.S. buyers will step in to support the market or if the selling will continue. The previous day's gains are now being tested, with the S&P 500 and Nasdaq Composite having closed higher on Monday, driven by technology stocks. However, not all stocks participated in the rally; for instance, Microsoft announced job cuts, leading to a decline in its stock price.
Key Support Levels
The September E-mini S&P 500 Index futures are currently testing a support cluster around the 50-day moving average at 7485.75. If buying pressure continues, the index could challenge previous highs. Conversely, if the support fails, it may trigger further declines towards lower targets.
What to Watch
Today's cash session will be crucial as the market reacts to the overnight selloff. If U.S. semiconductor stocks can maintain their levels from Monday, the record highs on the Dow and S&P 500 may remain intact. However, if selling pressure extends, the Nasdaq-100 could face significant declines. The trade balance report is the primary economic release to watch as it could influence market sentiment.
Conclusion
The current market dynamics highlight the fragility of the Nasdaq-100 as it faces pressure from a global chip selloff. Traders are advised to monitor key support levels closely, as the outcome of today's trading session could set the tone for future market movements.