^NDX Today, February 05: AI Jitters Deepen as Alphabet Capex Shocks

The Nasdaq Composite stayed under pressure today as AI jitters deepened and investors questioned big-tech spending plans. Alphabet’s upbeat results but larger 2026 AI capex outlook rattled risk appetite, keeping “Nasdaq today” screens in the red. The Nasdaq 100 (^NDX) traded at 25,552.39, down 1.2822640137581451%, with volatility elevated. Softer ADP hiring data added to growth worries. For Indian investors, US tech weakness often spills into IT-heavy allocations and global funds. We break down the drivers, levels to watch, and portfolio moves to consider in simple terms.

Nasdaq today: What moved markets

We saw risk-off after Alphabet’s results beat but its larger 2026 AI capex outlook shook confidence in profitability for AI tech stocks. That, plus softer ADP hiring data, kept traders cautious on growth. Nasdaq Composite breadth weakened as software and megacaps slipped, according to live coverage. For India-focused portfolios, this matters because US tech drives sentiment for global equity funds held by local investors.

The Nasdaq 100 (^NDX) stood at 25,552.39, down -331.90499999999884 points or -1.2822640137581451%. The day low hit 25,456.18 and the high was 25,823.30. Year high is 26,182.10. YTD change is 1.37355%. Over 1 year, it is up 18.80346%. The Nasdaq Composite trend looks cautious as volatility picked up, with volume at 1,437,461,100 against average 8,578,482,459.

What this means for Indian investors

US tech wobbles can weigh on India’s IT services sentiment and global equity funds held by Indian investors. The rupee’s moves can either cushion or amplify USD-based declines, so we prefer checking returns in both INR and USD. The Nasdaq Composite often sets the tone for risk. Avoid reacting to headlines; evaluate allocation by goals and horizon.

We prefer SIP discipline over timing swings. Consider staggering any fresh risk into weakness and rebalancing if US tech grew outsized. Hedging with USD assets can reduce currency shocks. Track the Nasdaq Composite and “Nasdaq live” updates around earnings, payrolls, and inflation prints. Keep emergency cash ready, and avoid concentration in single themes.

AI tech stocks under pressure

Investors rotated out of software and some megacaps as heavier AI capex raised margin concerns. The market is testing how quickly AI spend turns into revenue. This weighed on AI tech stocks even after strong prints from select names. The Nasdaq Composite reaction reflects a shift toward selective risk-taking rather than wholesale buying of growth.

With Alphabet’s beat but heavier AI spending plan, traders expect choppier tape around mega-cap updates and macro data, keeping “Nasdaq today” tone fragile. Software sentiment remains cautious as highlighted by recent sessions, per Bloomberg. We will track “Nasdaq live” moves around payrolls, CPI, and upcoming AI product roadmaps.

Key levels and indicators to watch

RSI sits at 57.89. ADX at 13.58 suggests no strong trend. The 50-day average is 25,371.656 and the 200-day is 23,536.389. Bollinger bands show 24,839.66 to 25,946.86 with a 25,393.26 middle. Near term, watch 25,456 intraday support and 25,823 resistance, with 26,182 as the year high the Nasdaq Composite needs to clear.

Model projections show monthly 25,366.73, quarterly 24,128.86, and yearly 25,640.77147762535 for ^NDX, then 3-year 30,784.826501802163 and 5-year 35,931.958407752754. Treat these as scenarios, not promises. Combine levels with earnings quality, cash flow trends, and macro data. The Nasdaq Composite path will hinge on AI monetisation, capex discipline, and inflation trajectory.

Final Thoughts

AI spending plans are now a key swing factor for tech. Alphabet’s larger 2026 AI capex outlook hit sentiment, while softer hiring data nudged growth worries. For Indian investors, this means brace for choppy days on global funds and IT-linked holdings. Our playbook is simple: stick to SIPs, rebalance excess tech exposure, and stagger entries instead of going all in. Watch key levels around 25,456 to 25,823, the 50-day average near 25,371.656, and the year high at 26,182. Pair technicals with earnings quality and macro prints. The Nasdaq Composite can recover if AI spend converts to revenue and margins hold. Stay data-driven and diversified.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.