Professor Ali Gamal Abdelgawad: NASDAQ Composite Index

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Professor Ali Gamal Abdelgawad: NASDAQ Composite Index

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

NASDAQ Composite Index

First: Index Overview

The NASDAQ Composite closed at 23,241.99 points, down 177.09 points (-0.76%), within a daily range of 23,237.78–23,445.26 points.

The index's yearly range is between 14,784.03 and 24,019.99 points, indicating that the index remains close to its yearly highs but has experienced short-term selling pressure.

Technical Analysis

Short-Term Trend: Negative today, with a daily decline of -0.76%, but still within a medium-term uptrend since the beginning of the year.

Resistance Levels: Near the yearly high of 24,019–24,100 points. A break above this area could open the way for a new upward move.

Support levels: 23,200 – 23,000 points. A break below this level could trigger stronger selling pressure towards 22,500 points.

Momentum indicators: A daily decline accompanied by a weekly drop of -1.57%, but the monthly and three-month trends remain positive (+2.14% over 3 months), indicating that the medium-term positive momentum has not yet been broken.

Financial analysis:

Liquidity: Daily trading volume reached 1,142,731,291 shares with a 3-hour average of 1,619,891,076 shares, a high volume reflecting strong market activity.

Volatility: The index experienced significant volatility over the week and month, but the year-to-date performance remains strong at +20.36%, reflecting a return of investor confidence after previous volatility.

Long-Term Performance: Over the past six months, the index has gained 15.04%, and over the past five years, it has risen 80.33%, demonstrating strong and relatively stable cumulative gains for major technology companies.

Fundamental Analysis

US Economy: Economic growth is relatively stable with moderate inflation rates, supporting the earnings of major technology companies listed on the Nasdaq.

Leading Companies: Companies like Apple, Microsoft, Amazon, Nvidia, and Tesla continue to directly influence the index's direction, and their strong financial performance reinforces market expectations.

Monetary Policy: Expectations of continued supportive or stable interest rates help sustain investment in the technology sector and its growth.

Sectoral Analysis

Technology Sector: This sector dominates the Nasdaq and demonstrates strength in long-term performance despite daily declines.

Healthcare and Biotechnology Sector: This sector provides additional support to the index with stable earnings for companies like Pfizer, Moderna, and Gilead.

Digital Consumer Services Sector: This sector exhibits balanced performance with minor fluctuations, but it remains an indicator of improving confidence in the digital economy.

Outlook

Short-term: The market is likely to experience a slight correction to the 23,000–23,200 level before a potential new upward trend.

Medium-term: The overall trend remains bullish, with potential targets at 24,000–24,200 if investor liquidity and strong performance from major companies continue.

Risks: Any sharp changes in US monetary policy or weaker earnings from technology companies could lead to stronger selling pressure on the index.

Investor strategy: Focus on leading technology stocks, monitor corrections for short-term buying opportunities, and diversify risk across sectors supported by stable profitability.