Nasdaq 100 Faces Headwinds as Bond Yields and Algorithmic Selling Loom

US technology stocks are encountering resistance at the start of the week, with Nasdaq 100 futures trading lower in pre-market activity. The contracts were down between 0.46% and 0.63%, signaling a pause after Friday's strong rebound of +2.15%. This weakness stands in stark contrast to Asian markets, where Japan's Nikkei 225 surged nearly 4% to a record high following Prime Minister Takaichi's landslide election victory.

A key pressure point is the climb in the benchmark 10-year US Treasury yield, which increased by over 3 basis points to 4.237%. Higher borrowing costs typically dampen the appeal of growth-oriented technology equities, countering the positive "risk-on" momentum seen elsewhere.

Adding to the caution are liquidity concerns highlighted by Goldman Sachs. The firm warns of potential substantial outflows from systematic funds known as Commodity Trading Advisors (CTAs). Depending on market movements, these algorithmic funds could sell between $15 billion and $33 billion in US equities this week. Goldman's proprietary "Panic Index" currently reads 9.22, hovering near maximum fear levels. These liquidity overhangs are capping the upside for volatile tech shares for now.

A clear global divergence is evident: while the Nikkei 225 soared past 56,000 points and European indices like the DAX gained 0.7%, US tech futures are decoupling to the downside.

Individual Stock Movers Reflect Mixed Landscape

Post-earnings volatility continues to drive action on a stock-specific basis.

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

Notable Gainers:
* Novo Nordisk (NVO): Shares jumped approximately 6% in pre-market trading.
* Nvidia (NVDA): The chipmaker is attempting to stabilize following its roughly 7% recovery on Friday. CEO Jensen Huang reaffirmed significant investment in OpenAI and defended the industry's projected AI spending of around $600 billion.

Stocks Under Pressure:
* Micron Technology (MU): Leading semiconductor weakness, the stock fell about 3%.
* Amazon (AMZN): The decline continued after Friday's 5% drop. The company's announced massive AI infrastructure spending, forecast to reach $200 billion by 2026, is weighing on margin expectations.
* ON Semiconductor (ON): Shares shed 1.38% ahead of its quarterly report, as investors express doubts over automotive chip demand.

Technical and Macro Catalysts in Focus

The technical picture is shifting from recovery to consolidation. The VIX volatility index rose to 19.5, while the Fear & Greed Index sits at 72 ("Greed"). This signals aggressive short-term hedging is occurring despite a medium-term bullish bias.

Key technical levels are being tested:
* The QQQ ETF is probing immediate support at $609.00.
* For the broader market, analysts note a sell trigger for the S&P 500 lies at 6,707 points.

The upcoming macro calendar will likely set the tone. January labor market data (due Wednesday and Thursday) and the Consumer Price Index release on Friday, February 13th, are the week's major events. Until then, the Nasdaq 100 remains vulnerable to the CTA-driven selling flows identified by Goldman Sachs.