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Nasdaq swings on hawkish Fed dissent, oil jump and rate pressure
After a Fed decision to hold rates, a hawkish split and higher Treasury yields helped trigger a sharp drop before Microsoft and semiconductors lifted the Nasdaq 100 back up 2.8%.
Wall Street went through a volatile two day stretch as the Fed held its target range steady at 3.50% to 3.75%, but three FOMC members pushed for a rate hike, an unusually hawkish dissent that contributed to the Dow dropping more than 1,100 points, its worst session since April 2025, according to Action Forex.
Yields spiked as the 30 year Treasury rate touched levels not seen since 2007, helped by renewed US Iran strikes that pushed oil higher and revived inflation concerns, Action Forex added.
The Nasdaq 100 initially slid into correction territory, down 11% from its June record high, before reversing. Thursday’s rebound was driven by blockbuster earnings from Microsoft, including a surge in its Azure cloud business, alongside a recovery in previously beaten down semiconductor stocks, powering a 2.8% gain for the Nasdaq Composite and snapping a six day losing streak.
Action Forex also pointed to technical levels, saying the Nasdaq 100 is testing a descending trendline from late June highs and pressing near the 100 period EMA around 28,620, with the RSI showing bullish divergence. It noted the upside depends on breaking above the trendline and the EMA, while rejection could send price back toward the 27,720 area.
Latest closeNasdaq Comp. 25,373.85 ▲1.0%|Dow Jones 52,485.03 ▲0.5%