The Nasdaq 100 snapped its record-breaking run on Thursday, closing lower after cautious commentary from Federal Reserve Chair Jerome Powell prompted a wave of profit-taking. The technology-heavy index finished the session down 178.94 points, or 0.73%, settling at 24,580.17.
Market Reversal Follows Early Gains
Trading began on a positive note, with the index climbing to an intraday peak of 24,764.30 points shortly after the opening bell. However, the mood shifted decisively following Powell’s remarks. The Fed Chairman jolted investors by stating that equities appear “fairly highly priced” and cautioning that there is “no risk-free path” for monetary policy.
This sentiment triggered a sell-off, dragging the Nasdaq 100 to a daily low of 24,536.50. A modest recovery in the final hour of trading pared some of the session’s losses.
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Broader Market Weakness and Rising Uncertainty
The pullback was not isolated to the tech sector. Broader U.S. equity indices also faced pressure, reflecting a market-wide increase in caution. The S&P 500 declined by 0.6%, while the Dow Jones Industrial Average dipped 0.2%. The growing unease was further evidenced by a rise in the CBOE Volatility Index (VIX), a key gauge of market fear.
The question now facing investors is whether this marks a temporary pause for the market’s leading technology shares or the beginning of a more significant correction. The sustainability of the recent rally will be tested in the coming trading sessions.
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