Nasdaq 100 Today: Chip Buyers Return but Earnings Risk Stays High

• The Philadelphia Semiconductor Index rose 2.5% Monday but remains down over 20% from its record high, having entered bear market territory after Friday's low of 28,408.25 on the Nasdaq-100 futures
• S&P 500 earnings are expected to grow 26% year-over-year this quarter according to LSEG data, yet markets sold off last week despite positive economic data, suggesting the AI trade had gotten ahead of fundamentals
• Yemen's Houthi naval blockade threat against Saudi Arabia adds geopolitical risk to energy supply lines, while the Nasdaq-100 futures show an 'inside move' signaling investor indecision with Friday's low becoming a key pivot point

Market Summary: Nasdaq 100 Rebounds on Chip Buying Amid Earnings Uncertainty

Key Market Movements

The Nasdaq 100 rebounded Monday following a sharp technology selloff, with the semiconductor sector leading gains. At mid-session, the Nasdaq Composite climbed 0.85% to 29,017.75, while the S&P 500 rose 0.32% and the Dow Jones declined 0.23%, indicating selective buying focused on growth and technology stocks.

Sector Performance

The Philadelphia Semiconductor Index surged 2.5% after entering bear market territory with a 20%+ decline from late-June highs. Individual chip stocks showed strong performance: Micron up 5.1% and SanDisk gaining 5.4%. Alphabet rallied 3.4% on reports of developing proprietary AI chips.

Critical Earnings Week

Major technology companies report earnings this week, including Intel, Texas Instruments, Alphabet, and Tesla. S&P 500 earnings are projected to grow 26% year-over-year, up from earlier estimates of 23.7% (LSEG data). These results will determine whether the AI trade can sustain momentum after recent selling pressure.

Technical Outlook

The Nasdaq-100 touched its lowest level since May 6 at 28,408.25 on Friday. Technical analysts identify this as a pivot point: holding above could trigger recovery toward the 50-day moving average at 29,859.20, while breaking below may push toward the 200-day moving average at 26,886.01.

External Risks

Yemen's Houthis announced a naval blockade against Saudi Arabia, threatening energy supply lines. Fed rate hike odds for July stand at 15%.

Market Implications

The rebound appears fragile, with analysts questioning whether buying represents genuine conviction or short covering. Upcoming earnings must validate current valuations to sustain the recovery in AI-linked technology stocks.