Nasdaq 100 Maintains Momentum as Year-End Rally Continues

The technology-heavy Nasdaq 100 index continues to demonstrate strength, closing at a fresh record high of 25,587.83 points on Wednesday. The gain of 0.27% was fueled by unexpectedly robust U.S. economic data, further easing concerns about a potential recession. As 2025 draws to a close, market participants are weighing whether the current advance will sustain its pace or begin to fade in the final trading sessions.

A key driver behind the market's confidence is the latest GDP report from the U.S. Commerce Department. The data revealed annualized growth of 4.3% for the third quarter, significantly surpassing the consensus forecast of 3.3%. This performance reinforces the narrative of a potential "soft landing," where the economy expands at a healthy clip without triggering runaway inflation. Such an environment has historically been favorable for growth-oriented equities.

Reflecting this optimistic sentiment, the CBOE Volatility Index (VIX) declined to 14.00, signaling a pronounced appetite for risk among investors. The prevailing view is that the market's leading technology companies can, at least for the time being, justify their current valuations.

Sector Performance: Semiconductors and Consumer Stocks Lead

A review of sector movements reveals clear leaders and laggards. Semiconductor manufacturers and consumer discretionary names were among the top performers.

Notable Advancers:
* Micron Technology (MU): Shares climbed 3.8% to $286.68, supported by optimistic expectations for memory chip pricing.
* Marvell Technology (MRVL): The stock advanced 3.4% to $86.49, benefiting from sustained demand for AI-related infrastructure.
* Costco (COST): The retailer gained 2.0%, closing at $871.86, as strong consumer spending figures within the GDP report confirmed positive momentum.

Notable Decliners:
* Datadog (DDOG): The software stock fell 2.3% to $138.04, as investors took profits in some highly valued names.
* Lululemon (LULU): Shares dipped 1.1% to $210.40 amid mixed signals from the retail sector.

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

While the semiconductor industry rides powerful structural trends, some software and consumer stocks are showing early signs of exhaustion.

Technical Perspective: Overbought but Bullish

From a technical standpoint, the index presents a mixed picture. Its Relative Strength Index (RSI) reading of 71.2 places it in overbought territory, which serves as a cautionary signal for short-term traders. However, the broader trend remains decisively positive. The index continues to trade well above its key moving averages—the 20-day at 25,548 and the 50-day at 25,265—confirming the underlying bullish trajectory.

Immediate resistance is seen at the weekly high of 25,665 points. A sustained breakout above this level would bring the psychologically significant 26,000 mark into view. Critical support lies around the 25,500 level, which coincides with the 20-day moving average.

The Moving Average Convergence Divergence (MACD) indicator remains in positive territory, though its histogram shows diminishing momentum, suggesting the rally may be poised for a consolidation phase.

Outlook for the Final Trading Stretch

Options market activity continues to reflect a bullish bias, particularly for semiconductor-focused exchange-traded funds. Concurrently, a slight rise in the put/call ratio points to cautious hedging against a potential correction in January.

With full market liquidity returning after the holiday period, trading could see increased volatility. The key question is whether the index can defend Wednesday's gains or if more pronounced profit-taking will emerge. The overall technical setup remains favorable, provided the index holds above the 25,500 support zone.