Nasdaq 100: Global Chip Selloff Threatens 50-Day MA Support

• Semiconductor stocks sold off uniformly across all major markets: Samsung fell 9% despite record profits, SK Hynix dropped over 10%, and losses extended to Tokyo Electron, Taiwan Semiconductor, ASML, and other global chip names
• Nasdaq 100 futures are trading below their short-term retracement zone and approaching critical 50-day moving average support at 29,590; a break below could trigger further selling toward 28,512 and potentially 26,208
• The selloff reversed Monday's tech-led rally where AMD gained 6.6% and Western Digital ran 7%, with the Dow having just closed above 53,000 for the first time

Market Summary: Global Chip Selloff Pressures Nasdaq 100

Key Developments

A widespread global semiconductor selloff is threatening technical support levels for the Nasdaq 100, with futures trading below key retracement zones on Tuesday, July 7, 2026. This follows Monday's gains where the S&P 500 and Nasdaq Composite both closed higher.

Sector Performance

The chip sector experienced uniform selling across all major markets:

• Samsung fell 9% despite posting record profits
• SK Hynix dropped over 10%, dragging down the Kospi
• Tokyo Electron, SoftBank, and Taiwan Semiconductor all declined in Asia
• European chipmakers ASML, Infineon, and STMicroelectronics retreated
• Western Digital had rallied 7% Monday, while AMD gained 6.6%

Individual Stock News

Microsoft declined after announcing approximately 4,800 job cuts. Dell Technologies rose 4%+ following President Trump's White House endorsement. Walmart traded lower in extended hours after Trump announced the retailer would cut prices on select products for America's 250th anniversary. Vertex Pharmaceuticals dropped on news of a $10 billion cash acquisition of Crinetics Pharmaceuticals.

Technical Outlook

S&P 500 futures are testing support at the 50-day moving average (7485.75) and a retracement zone of 7540.50-7493.00. The benchmark reached its highest level since June 17 before retreating.

Nasdaq-100 futures are trading below their 50-day MA at 29590.29, having formed a lower top at 30599.75, indicating increasing seller pressure. Key downside targets include 29160.50 and potentially 28512.00 if selling accelerates.

The Dow futures ticked higher after Monday's record close above 53,000.

Market Implications

Analysts note the coordinated global selloff despite strong earnings suggests overleveraged positioning. Tuesday's U.S. trade balance report is the primary economic release to watch.