^NDX Today, February 5: AI Jitters Drive Tech Rout Before Alphabet
Nasdaq 100 today is under pressure as AI disruption fears spark a tech stocks selloff ahead of Alphabet earnings. Software and chipmakers led declines, with traders watching capex guidance for AI. A softer ADP jobs report added to risk-off mood and lifted volatility. For UK investors, dollar moves and US earnings can sway ISA and SIPP returns. We break down what is driving Nasdaq 100 today, the key levels to watch, and simple steps to protect portfolios.
What moved markets
Investors are reassessing winners and losers from AI. Spending may shift to data centers and GPUs, squeezing parts of software. Chip names also wobbled as leadership narrows. Reports of fresh selling in chipmakers like AMD and Qualcomm surfaced, with FT coverage noting pressure across semis. Arm was volatile, adding to swings. This backdrop weighed on Nasdaq 100 today as traders trimmed high-beta exposure.
Alphabet earnings are a key catalyst for Nasdaq 100 today. Markets want clear signals on AI spending, data center outlays, and cloud margins. Guidance on capex and model costs could ripple across chips, hyperscalers, and software. Stocks stayed choppy into the print, with live market updates flagging a second down day. A soft ADP reading also nudged yields and risk appetite.
Why it matters in the UK
Many UK investors own US tech through global funds or QQQ-style trackers in ISAs and SIPPs. Moves in Nasdaq 100 today can swing GBP returns via both price and FX. A stronger pound may trim USD gains, while a weaker pound may amplify them. Fee structures, hedging, and rebalancing policies can change outcomes, so we should review fund factsheets.
Arm’s swings can filter into UK tech sentiment despite its US listing. Suppliers to US cloud and AI hardware, plus London-listed chip equipment and materials peers, may track Nasdaq 100 today. FTSE exposure is smaller in pure tech, but earnings read-across affects risk budgets. UK investors should check sector weights and avoid concentration in one AI-linked theme.
Key levels and signals to watch
On our models, RSI sits near 57.89, showing moderate momentum for Nasdaq 100 today. Average True Range is about 309.56, flagging active daily swings. Bollinger Bands cluster around 25,946.86 (upper), 25,393.26 (middle), and 24,839.66 (lower). ADX is 13.58, which suggests trend strength is weak. This mix supports range trading tactics until a clear breakout appears.
We mark first supports near the 50-day average at 25,371.66 and the middle band at 25,393.26. Resistance sits near 25,946.86 on the upper band. For context beyond Nasdaq 100 today, our baseline paths point to about 25,640.77 over 12 months and 30,784.83 in 3 years, then 35,931.96 in 5 years. Treat these as guides, not guarantees.
Positioning ideas for risk control
In a tech stocks selloff, we can scale in using small tranches and place limit orders around support. Consider stop losses sized to about one ATR (~310 points) below entries, and review them daily. Simple hedges, like trimming winners or adding short-duration bond exposure, can dampen swings tied to Nasdaq 100 today.
We can spread risk across semis, cloud, and software, not just one AI narrative. Quality balance sheets and steady cash flow help during drawdowns. Keep a cash buffer for opportunities if Alphabet earnings spark more volatility. Rebalance to target weights when moves are large. This keeps Nasdaq 100 today risks from dominating the whole portfolio.
Final Thoughts
Nasdaq 100 today reflects a shift in leadership as AI disruption fears pressure software and chips ahead of Alphabet earnings. For UK investors, the key is to map US tech moves to GBP-based returns, watch capex signals, and avoid one-theme concentration. The technical picture shows modest momentum, weak trend strength, and wide daily ranges. That mix favours staged entries, clear stops, and selective hedging. Focus on quality tech names, sensible position sizes, and diversified sector exposure. If post-earnings guidance steadies nerves, rebounds can come fast. If not, support near the 50-day area becomes vital. Plan trades before placing them.
FAQs
What is driving the Nasdaq 100 today?
AI disruption fears are shifting spending towards data centers and GPUs, which hurts some software and hardware names. A softer ADP jobs report also cooled risk appetite. Markets are waiting for Alphabet earnings and capex guidance, which can influence semis, cloud, and broader tech sentiment into the next sessions.
How can UK investors manage risk in a tech stocks selloff?
Scale in with small tranches, use stop losses sized around daily ranges, and trim concentrated positions. Add diversified tech exposure and short-duration bonds to reduce swings. Keep a cash buffer for opportunities if volatility spikes around Alphabet earnings. Review FX hedging, as GBP moves affect USD-denominated returns.
Which technical levels matter right now?
First supports cluster near the 50-day average around 25,371.66 and the Bollinger middle band at 25,393.26. Resistance is near the upper band at 25,946.86. Momentum is moderate (RSI ~57.89) and trend strength is weak (ADX 13.58), so range trading may work until a decisive breakout.
Why do Alphabet earnings matter for Nasdaq 100 today?
Alphabet’s capex plans for AI, data centers, and model costs influence semiconductors, cloud margins, and software budgets. Strong guidance could lift risk appetite, while cautious spending might extend selling. As Alphabet is a top benchmark constituent, its moves carry outsized impact on index direction and sector leadership.
Disclaimer:
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.