Nasdaq 100 Consolidates After Record Run

The Nasdaq 100 concluded Friday's session essentially flat, closing at 25,644 points and pausing its recent record-setting advance. Trading activity remained subdued following the holiday period, with investors lacking a clear directional bias. The index was caught between strength in semiconductor shares and notable declines in names like Tesla and Moderna.

Positive economic data provided a stable foundation for the market. Revised figures showed the US economy grew at an annualized rate of 4.3% in the third quarter, surpassing earlier estimates. Furthermore, initial jobless claims fell to 214,000, underscoring continued resilience in the labor market. Against this backdrop, the yield on the benchmark 10-year US Treasury note held steady at 4.14%.

Sector Performance Mixed in Thin Trading

Trading volume was notably light at approximately 10.2 billion shares, well below the average of 16 billion, as many institutional participants extended their holiday breaks. The index traded within a narrow band between 25,620 and 25,717 points, reflecting the absence of strong catalysts.

The technical picture, however, remains constructive. The Nasdaq 100 continues to trade comfortably above its key moving averages. Immediate support is seen at the 25,620 level, while the 26,000 point mark represents the next significant psychological target for bullish investors.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

Chipmakers Outperform, While Tesla and Moderna Drag

The semiconductor sector was a clear source of strength. Micron Technology led the gainers, advancing 3.8% amid sustained demand for its AI memory solutions. Nvidia added 1.0% after the company announced a licensing agreement with chip startup Groq, a move analysts see as reinforcing its dominance in the AI inference market.

On the downside, Moderna was the session's weakest performer, dropping 4.7% and extending its recent downward trend. Tesla shares declined 2.1%, exerting measurable pressure on the index. Palantir Technologies also retreated, giving up 2.8% following a strong prior week, in what appeared to be profit-taking activity.

A divergence was observed in broader market indices. While the Nasdaq 100 held steady, the small-cap focused Russell 2000 index fell 0.5%. This suggests investors continue to view large-cap technology stocks as relative safe havens as the year draws to a close. The final trading sessions of the year will determine whether the prevailing consolidation continues or if the rally regains momentum.