Nasdaq Falls as Nvidia Buyback Rally Fails to Shield Chip Stocks From Yield Pressure

What to Know

• At 14:11 GMT, the Nasdaq Composite traded at 26,912.91, down 155.81 points, or 0.58%.
• The iShares Semiconductor ETF, SOXX, fell 2.38% to $559.05 as chip-sector breadth weakened.
• Nvidia rose $5.91, or 2.63%, to $230.98 after adding $150 billion to its share-repurchase authorization, taking the total to $235 billion.
• The Nasdaq Composite slipped below retracement-zone resistance at 26,997.47 to 27,066.22.
• The daily swing chart still shows the Nasdaq Composite in an uptrend, with a move through 27,288.79 signaling a resumption of that trend.
• The main trend would turn down under 25,802.96, while the minor trend would turn down under 26,706.14.
• Brent crude moved back above $106, while the 10-Year U.S. Treasury yield traded over 5.20% and the 30-year yield stood above 5.50%.
• Wednesday’s Personal Consumption Expenditures reports, Thursday’s manufacturing data and Friday’s employment report are the key macro events traders are watching.
• SOXX needs to regain $560.02 to reduce sellers’ early advantage, while $527.37 marks the next moving-average pullback target if weakness persists.

Nvidia Rises While the Nasdaq Loses Ground

The Nasdaq Composite moved lower in Monday trading even as Nvidia stood out as a rare source of strength across the artificial intelligence trade. At 14:11 GMT, the index was quoted at 26,912.91, down 155.81 points, or 0.58%, reflecting pressure from a weaker semiconductor tape, higher energy prices and a bond-market backdrop that continues to challenge long-duration growth stocks.

Nvidia gained $5.91, or 2.63%, to $230.98 after the company added $150 billion to its share-repurchase authorization, lifting the total authorization to $235 billion. The announcement gave buyers a clear reason to support the stock at a time when many other technology and chip names were under pressure. For market participants, the move reinforced Nvidia’s status as the standout leader in the AI theme, but it did not solve the broader problem facing the Nasdaq: narrow leadership.

The iShares Semiconductor ETF, SOXX, was down 2.38% at $559.05, showing that Nvidia’s advance was not enough to offset selling across the wider chip group. AMD and Micron traded lower alongside the semiconductor complex, while Meta, Microsoft and Amazon also lost ground. That matters because the prior advance in major indexes was built around enthusiasm for AI-linked leaders. If buyers concentrate in only one name while the rest of the group turns lower, index momentum becomes harder to sustain.

Nasdaq Technical Picture Shows Sellers With the Early Edge

The Nasdaq Composite is trading below retracement-zone resistance at 26,997.47 to 27,066.22, an area that technical traders are treating as the first major line between renewed upside momentum and short-term vulnerability. The daily swing chart still defines the main trend as up, but the index needs to reclaim important resistance and challenge higher levels before traders can argue that last week’s momentum has fully resumed.

A trade through 27,288.79 would signal a resumption of the uptrend. That level now stands as the next important upside marker for chart watchers after last week’s run. On the downside, the main trend would change to down under 25,802.96, a much deeper level that would mark a more significant shift in the broader technical structure.

The minor trend also remains up, but it is more sensitive to near-term selling. A trade through 26,876.27 makes 27,122.76 a new minor top, while the minor trend would change to down under 26,706.14. For active traders, that creates a narrow zone of tactical risk: the index is close enough to minor trend markers for intraday direction to matter, but still above deeper support that would define a more meaningful deterioration.

The nearest retracement-zone support sits at 26,545.88 to 26,370.55. If sellers push the Nasdaq into that area, buyers will need to defend it to prevent a deeper test. Below that zone, the 50-day moving average at 26,196.69 becomes the key technical level because it acts both as support and as a trend indicator. A firm reaction above that moving average would suggest buyers are still defending the larger advance, while a failure to hold it would likely raise concern about a broader correction.

SOXX Becomes the Breadth Gauge for Chip Traders

With Nvidia trading higher but the broader semiconductor group falling, SOXX is the chart many traders are using to judge whether the weakness is isolated or spreading. The ETF needs to move back above $560.02 to take the early advantage away from sellers. That level is acting as a near-term pivot because SOXX is trading close to it, yet has not convincingly reclaimed it during the early selloff.

Further resistance is seen at $575.69, followed by the 61.8% retracement level at $582.66. Technical traders are watching $582.66 as the key upside level because a sustained move above it could bring in new buyers and suggest the chip group is repairing the damage from Monday’s broad selling. Until then, strength in Nvidia may be viewed as stock-specific rather than evidence of a durable sector rebound.

On the downside, the 50-day moving average at $527.37 is the next pullback target if SOXX remains under pressure. The 200-day moving average at $449.78 is pointing higher and continues to provide longer-term support and trend direction. That longer-term trend remains important, but it does not remove the near-term problem: chip leadership has narrowed, and buyers have not yet shown that they are ready to rotate back into the weaker names.

Higher Oil and Treasury Yields Challenge the AI Rally

The macro backdrop is another reason technology buyers are showing less conviction. Brent crude moved back above $106 after President Trump rejected Iran’s ceasefire conditions, leaving the U.S.-Iran peace proposal stalled. Equity traders are treating the move in oil as an inflation risk, especially because tensions connected to the Hormuz story are feeding directly into rate-market concerns.

The 10-Year U.S. Treasury yield traded over 5.20%, while the 30-year yield moved above 5.50%. Last week, the 10-Year yield printed its highest level since 2007, and the 30-year reached a level not seen since 2004. Those are significant moves for equity markets because higher yields tend to pressure growth stocks by raising discount rates and increasing the relative appeal of fixed income.

Technology shares are particularly sensitive to this setup because much of their valuation rests on expectations for future growth. When yields rise sharply, investors often demand a lower price for those future earnings streams. That effect can be softened when earnings momentum is strong or when a powerful theme, such as AI, continues to draw steady inflows. Monday’s trading suggests that the market is testing whether the AI theme can keep absorbing pressure from energy and rates.

Economic Data Could Decide the Next Move

Wednesday’s Personal Consumption Expenditures reports are the first major data point that could cool the bond selloff. Tech buyers are looking for evidence that inflation pressure is easing enough to reduce the need for additional tightening from the Federal Reserve. A softer PCE reading could pull yields back and give growth stocks room to recover.

Thursday’s manufacturing data and Friday’s employment report follow later in the week. Strong manufacturing and jobs numbers may not be welcomed by technology bulls if traders interpret them as signs that growth remains too firm and inflation risks remain too persistent. In the current environment, good economic news can create a difficult tradeoff for equities because it may also support the case for tighter policy.

Until the data gives investors a reason to think otherwise, buyers are dealing with higher financing costs and a firm dollar. That combination can make it harder for high-valuation technology shares to extend gains. A weaker payrolls number, or a softer inflation reading, would be the type of catalyst that could ease yields and help tech regain its footing.

What Traders Are Watching Now

The first issue is breadth. Nvidia can draw buyers because of its buyback increase, but one stock cannot carry the Nasdaq Composite indefinitely. Market participants are watching AMD and Micron closely because renewed buying in those names would suggest the chip trade is stabilizing beyond Nvidia. If they remain weak, the Nasdaq’s advance may look increasingly dependent on a narrower set of leaders.

The second issue is the Nasdaq’s reaction to the 26,997.47 to 27,066.22 retracement zone. While the index remains below that area, sellers have the early edge. If buyers reclaim the zone and build on the move, attention can shift back toward 27,288.79. If the index fails, the 26,545.88 to 26,370.55 support zone becomes the next area buyers need to hold.

The third issue is SOXX. A recovery above $560.02 would ease immediate pressure, while a sustained push over $582.66 would be a stronger sign that new buyers are returning to semiconductors. If SOXX stays below $560.02, the chart leaves room for a pullback toward the 50-day moving average at $527.37.

Nvidia has the clearest single-stock momentum in the group. The buyback helped push the stock through the last swing top, and $234.76 is the next target as long as the $221.09 swing bottom holds. Even so, the broader market tone will likely depend less on Nvidia alone and more on whether yields ease, oil stabilizes and semiconductor breadth improves.

Frequently Asked Questions (FAQs)

Why did the Nasdaq Composite fall while Nvidia rose?

The Nasdaq Composite fell because selling pressure spread across the semiconductor group and other major technology names, while Nvidia benefited from its expanded share-repurchase authorization. Nvidia’s gain was not large enough to offset broader weakness in chip stocks and the pressure from higher Treasury yields.

What was Nvidia’s buyback announcement?

Nvidia added $150 billion to its share-repurchase authorization, bringing the total authorization to $235 billion. The announcement helped attract buyers to the stock even as other semiconductor names traded lower.

What level must the Nasdaq reclaim to improve its short-term tone?

The Nasdaq Composite needs to move back above the 26,997.47 to 27,066.22 retracement zone to reduce sellers’ early advantage. A trade through 27,288.79 would signal a resumption of the main uptrend.

Where is key Nasdaq support?

The nearest retracement-zone support is 26,545.88 to 26,370.55. If that area fails, the 50-day moving average at 26,196.69 becomes the next key support and trend indicator.

Why are higher Treasury yields pressuring technology stocks?

Higher Treasury yields can weigh on technology stocks because they raise discount rates and increase financing costs. Growth shares are often more sensitive to these changes because investors value them heavily on expected future earnings.

Why does Brent crude above $106 matter for the Nasdaq?

Brent crude above $106 matters because traders may view higher energy prices as an inflation risk. If inflation pressure stays elevated, bond yields can remain high, which tends to challenge technology and growth-stock valuations.

What is the key level for SOXX?

SOXX needs to regain $560.02 to take the early advantage away from sellers. If weakness continues below that level, the 50-day moving average at $527.37 is the next pullback target watched by technical traders.

Which economic reports are most important this week?

Wednesday’s Personal Consumption Expenditures reports are the first major focus, followed by Thursday’s manufacturing data and Friday’s employment report. These releases could influence Treasury yields and help determine whether technology shares can recover.

Can Nvidia carry the Nasdaq by itself?

Nvidia can support sentiment, but it cannot carry the Nasdaq Composite alone for long if the rest of the chip group and major technology names remain weak. Traders are watching whether buyers return to AMD, Micron and SOXX to confirm broader participation.