Nasdaq Index Analysis: Can Chips Extend Gains as Software Lags?

• Chip stocks led the rally with Intel up 4.70% and Amazon gaining 5.43% after reporting over $15 billion in annualized AI cloud revenue, reinforcing semiconductor leadership
• Software stocks suffered sharp declines, with Cloudflare down 13.88%, Fastly falling 12.76%, Zscaler dropping 11.46%, and ServiceNow losing 7.86%
• The Nasdaq broke above key technical levels including the 200-day moving average at 22,396.17, with potential resistance at 23,170 to 23,321 and major tops near 24,020

Market Summary: Nasdaq Advances on Chip Strength While Software Lags

Key Market Movement:

The Nasdaq Composite gained 187.42 points (+0.83%) to close at 22,822.42 on April 10, 2026, marking two consecutive sessions of gains. The rally was supported by easing Middle East tensions and declining volatility, though concerns persist regarding elevated inflation and potential Federal Reserve rate hikes.

Sector Performance:

A clear rotation occurred within tech stocks. Semiconductor companies led the advance, driven by strong investor focus on AI growth. Conversely, software stocks plunged 2.2% as investors rotated away from high-valuation names facing AI competition pressure.

Individual Stock Highlights:

Winners included Amazon (+5.43%) after reporting over $15 billion in annualized AI revenue from its cloud business, Intel (+4.70%), and Meta Platforms (+2.63%).

Losers concentrated in the software sector: Cloudflare (-13.88%), Fastly (-12.76%), Zscaler (-11.46%), Applied Digital (-8.0%), and ServiceNow (-7.86%).

Technical Analysis:

The index broke above both its 50-day moving average (22,520.45) and 200-day moving average (22,396.17), establishing these as new support levels. Analysts identify resistance targets at 23,169.68 to 23,320.62, with major tops at 23,988.27 and 24,019.99 in view.

Market Implications:

The divergence between chip and software performance signals selective buying focused on AI semiconductor infrastructure over cloud software providers. Falling oil prices eased inflation concerns temporarily, but slower economic growth and persistent inflation keep Fed policy uncertainty in focus. Upcoming economic data and Middle East developments will determine whether the rally continues.