Tech Stocks Rebound as Rate Cut Hopes Counter Early December Jitters

A sharp reversal is underway for the tech-heavy Nasdaq 100. After a frigid start to the month, buyers have stormed back into the market, fueled by corporate fireworks and shifting macroeconomic interpretations. The critical question for investors is whether this marks the beginning of a sustained year-end rally or merely a brief respite before further volatility.

The current surge presents a stark contrast to Monday's sentiment. The trading week opened under significant pressure, driven by a jump in 10-year U.S. Treasury yields above 4% and renewed anxiety over potential unwinding of Yen carry trades. A concurrent sharp correction in the cryptocurrency market added to the selling pressure on technology-adjacent equities.

The narrative flipped decisively on Tuesday. Ironically, recent signs of economic softness—specifically Monday's disappointing ISM Purchasing Managers' Index data—are now being viewed through a bullish lens. Market participants are interpreting weaker economic indicators as strengthening the case for a Federal Reserve interest rate cut as early as next week. Futures markets currently price in an 87% probability of such a move.

Corporate Earnings Provide the Spark

While macro factors set the stage, exceptional corporate results are providing the direct thrust for the recovery.
* MongoDB Ignites: The database platform has delivered a stunning performance, shattering profit expectations and raising its guidance. The stock's massive pre-market surge has lifted sentiment across the entire software sector.
* Semiconductors Hold the Line: As mega-cap peers like Microsoft and Meta have shown recent weakness, Nvidia continues to demonstrate resilience, providing crucial support to the broader index.

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

This selective buying activity underscores a readiness among investors to "buy the dip" in high-quality names that deliver positive earnings surprises.

Technical and Fundamental Crossroads

From a chart perspective, the index is now battling to stabilize above the 25,400-point level after shedding some ground earlier in the week. The immediate trajectory, however, hinges on the upcoming JOLTS job openings data.

The trading scenario is clearly defined: A cooler-than-expected labor market report would likely validate the rate-cut narrative and offer bulls further momentum. Conversely, an excessively hot jobs report could propel bond yields higher once again, potentially snuffing out the technology sector's fragile recovery.