Tech Stocks Breathe a Sigh of Relief as Buyers Return

A wave of buying activity on Friday provided a much-needed respite for the technology-heavy Nasdaq 100 index, steering it away from a feared weekend sell-off. The constructive relief rally was largely fueled by a critical psychological threshold, leaving market participants to ponder a crucial question: is this the formation of a bottom, or merely a temporary pause before the next wave of selling?

From a technical perspective, Friday represented a significant victory for the bulls. The index successfully defended the 24,000-point level, a mark increasingly viewed as the definitive line in the sand. Although the Nasdaq closed at 24,239.57 points, remaining below its 50-day moving average, the halt of the downward trend prevented more severe losses. Market fear, as measured by the Volatility Index (VIX), also receded noticeably, even as an underlying sense of skepticism persists.

Interest Rate Hopes Fuel the Rebound

The primary catalyst for the market's stabilization was a noticeable cooldown in the bond market. A retreat in the yield on the 10-year US Treasury note to 4.07% immediately alleviated pressure on interest-rate-sensitive growth stocks.

Adding to the calm, commentary from John Williams of the New York Fed provided reassurance. His remarks kept the door open for a potential interest rate cut in December, soothing anxious investors. This combination of falling yields and a measured tone from the central bank effectively stopped the waterfall-like selling witnessed on Thursday.

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

A Mixed Bag for Software Giants

The recovery, however, was not uniform across all sectors, with individual stocks dictating the pace:
* Ross Stores (+8.4%) delivered surprisingly robust earnings, dispelling fears about the purchasing power of the US consumer.
* Intuit (+4.2%) won over investors with its compelling AI strategy, demonstrating successful monetization of new technologies.
* In contrast, Veeva Systems plunged more than 10%, a warning signal for the software sector triggered by a disappointing outlook.

Crucial for broader market sentiment was the stabilization of AI heavyweight Nvidia. While its shares did not lead the rally, the absence of further selling was essential for the improved mood.

The Thanksgiving Week Test

As markets head into a shortened Thanksgiving week, trading volumes are expected to thin. Investors would be wise to monitor the 24,340 level closely; a decisive break above this point could unlock further upward potential. Conversely, if the index falls back below the critical 24,000-point mark at the start of the week, a retest of the October lows becomes a distinct possibility.