The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust, Series 1 QQQ, closed Thursday with a strong 2.5% gain. This marked the index’s sixth consecutive positive trading day, representing a significant rebound from its early-month selloff that pushed it into correction territory. The rally over the past six sessions has been impressive, reaching 9% – the best six-day run since November 2022. This surge indicates a resurgence of bullish sentiment among traders who saw the dip as an opportunity to buy tech stocks.
From a technical perspective, Thursday’s session marked a significant checkpoint for the Nasdaq 100. The index climbed back above its 50-day moving average, a key indicator for market trends. It had fallen below this average on July 24th.
Within the tech sector, semiconductor stocks experienced particularly strong gains. The VanEck Semiconductor ETF SMH, which tracks the performance of major semiconductor companies, surged 16% over the past six sessions, also its strongest streak since late 2022.
The driving force behind this recovery in the stock market, particularly for tech stocks, is the easing of recession fears that emerged earlier in August. Economic data has been more positive than initially anticipated, casting doubt on the severity of a potential recession. The July jobs report, which initially sparked concerns, has been overshadowed by a recent decline in initial jobless claims over the past two weeks. This suggests that the increase in the unemployment rate from 4.1% to 4.3% in July may have been a temporary anomaly rather than a sign of deeper labor market problems. Furthermore, retail sales in July significantly exceeded expectations, showing a robust 1% month-over-month increase, the fastest pace since January 2023. This strong retail performance reinforces the narrative of a resilient economy.
Top Nasdaq 100 Performers on Thursday:
| Name | % Return |
|—|—|
| Marvell Technology, Inc. (MRVL) | 8.71 |
| Super Micro Computer, Inc. (SMCI) | 8.59 |
| Cisco Systems, Inc. (CSCO) | 6.78 |
| ON Semiconductor Corporation (ON) | 6.76 |
| Lululemon Athletica Inc. (LULU) | 6.68 |
Worst Nasdaq 100 Performers on Thursday:
| Name | % Return |
|—|—|
| Mondelez International, Inc. (MDLZ) | -1.32 |
| O’Reilly Automotive, Inc. (ORLY) | -1.24 |
| T-Mobile US, Inc. (TMUS) | -0.96 |
| Verisk Analytics, Inc. (VRSK) | -0.90 |
| The Kraft Heinz Company (KHC) | -0.88 |
