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Published: 2 July 2026,05:56
Daily Market Analysis New
*The Nasdaq led losses as investors rotated out of high-growth technology stocks, with AI-related names such as Micron and Intel facing notable selling pressure amid valuation concerns.
*Fed’s Warsh reaffirmed the need to keep inflation under control, reinforcing expectations of higher-for-longer interest rates and pressuring equities.
*Ongoing Middle East tensions continue to dampen risk appetite despite recent peace efforts. Investors will closely watch upcoming U.S. economic data and geopolitical developments for the next market direction.
The Nasdaq faced strong selling pressure in the latest session, while the Dow Jones and S&P 500 remained relatively stable. This divergence highlights a clear rotation away from high-growth technology stocks amid rising risk-off sentiment. Major AI-related names, including Micron and Intel, experienced notable sell-offs, reflecting profit-taking and concerns over elevated valuations in the sector.
The shift in market tone was reinforced by comments from Federal Reserve official Kevin Warsh at the ECB central bank gathering. Warsh reiterated the critical importance of keeping inflation under control, a message perceived as hawkish by market participants. His remarks have tempered expectations for near-term rate cuts and contributed to higher yields, further weighing on growth-sensitive equities.
Geopolitical uncertainties in the Middle East continue to cast a shadow over global risk appetite. Although a peace deal was reached in Switzerland more than a week ago, the agreement appears fragile, with reports of ongoing crossfire undermining confidence in regional stability. This has kept investors cautious, favoring defensive sectors over high-beta growth areas.
The near-term outlook for U.S. equities remains guarded. The Nasdaq’s underperformance may persist if rotation out of technology intensifies, while the broader indices could find support in defensive names. Upcoming economic data, including labor market figures, and any developments from the Middle East will be key drivers. A sustained hawkish Fed narrative or renewed geopolitical flare-ups could extend pressure on risk assets.
Technical Analysis
Nasdaq Composite is currently trading within a broad sideways range, fluctuating between the key support level at 28,500 and the major resistance zone near 30,500. This prolonged period of consolidation suggests that the market is searching for fresh directional catalysts following the strong rally that has driven the index higher since April.
Despite the impressive recovery of more than 30% from its April lows, bullish momentum appears to be fading as the Nasdaq struggles to break above the upper boundary of its current trading range. The repeated failure to establish new highs indicates that buying interest is becoming less aggressive, increasing the likelihood of profit-taking after the recent advance.
If the index continues to lack sufficient momentum to break above the 30,500 resistance level, it may undergo a deeper technical correction as traders lock in gains from the previous rally. Such a pullback would be viewed as a normal corrective phase following the index’s substantial appreciation and could help reset market positioning before the next major move.
In the near term, the key level to monitor is the short-term pivotal support at 29,365.00. This level serves as an important technical threshold for maintaining the current bullish structure.
A decisive break below 29,365.00 would indicate that buyers are losing control of the market and could signal the beginning of a bearish trend reversal. Such a move would likely increase selling pressure and expose the Nasdaq to a deeper correction within its broader trading range.
Resistance Levels: 30,840.40, 31,718.40
Support Levels:29,365.00, 28,695.50
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