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Published: 25 August 2026,06:55
Daily Market Analysis New
Key Takeaways:
*Wall Street turned cautious as investors reduced exposure to technology stocks ahead of Nvidia’s earnings.
*Nasdaq underperformed, falling 0.76%, while the Dow gained 0.26%, highlighting weakness concentrated in growth and semiconductor stocks.
*AI valuation concerns are rising, with investors questioning whether current spending and earnings expectations can justify elevated tech valuations.
Wall Street started the week under pressure as investors reduced exposure to technology and semiconductor stocks ahead of Nvidia’s earnings, with the Dow rising 0.26%, while the S&P 500 fell 0.28% and the Nasdaq declined 0.76%. The divergence is important because it shows that Monday’s weakness was concentrated in growth and technology rather than representing a broad-based equity selloff. Semiconductor shares were particularly weak, while lower oil prices and falling long-term Treasury yields provided some support to other parts of the market.
Nvidia has become the biggest near-term catalyst for the AI trade. Investors are looking for evidence that data-centre spending and AI infrastructure demand remain strong enough to justify extremely high technology valuations. Concerns are growing that expectations have become difficult to exceed, while developments elsewhere in the technology sector are adding to caution. Alibaba’s planned $10.2 billion share sale to fund its AI ambitions and weaker-than-expected investor reaction to Samsung Electronics’ shareholder-return plans have contributed to a broader pullback in Asian technology stocks. South Korea’s KOSPI subsequently fell sharply, highlighting how sensitive the global semiconductor trade has become to expectations surrounding AI investment.
Bond-market developments are providing some offset. The decline in longer-term Treasury yields reduces the discount rate applied to future corporate earnings, which can support high-growth stocks. However, the market is simultaneously facing elevated bond yields, expensive AI valuations, geopolitical uncertainty and changing Fed expectations. Nvidia’s results on Wednesday and Warsh’s Jackson Hole speech later this week could therefore determine whether the current pullback is simply profit-taking or the beginning of a broader rotation away from high-beta technology stocks. A strong Nvidia outlook could revive the Nasdaq and S&P 500, while disappointing guidance could trigger a much larger de-risking move given how heavily the market is positioned around AI.
Technical Analysis
Nasdaq is showing short-term bearish momentum within a broader recovery structure. After rebounding strongly from the 27,220 support, price recovered toward the 30,000–30,350 resistance zone, but has since pulled back and is currently trading around 29,310. The recent rejection from the 30,000 area, combined with the descending trendline, suggests that buyers are losing momentum in the near term.
Momentum indicators are turning more cautious. RSI has fallen to around 46, slipping below its moving average and moving into neutral territory, indicating that bullish momentum has weakened but the market is not yet oversold. Meanwhile, MACD has turned bearish, with the MACD line below the signal line and the histogram remaining negative, supporting the possibility of further near-term consolidation or downside pressure.Overall is neutral-to-bearish in the short term.
Resistance Levels:30,350.00, 31,500.00
Support Levels: 28,490.00, 27,220.00
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