Tech Titans Propel Nasdaq 100 to a Resilient Weekly Close

While broader market sentiment turned negative on Friday, heavyweight technology shares provided crucial support, driving the Nasdaq 100 to a positive finish. The index closed at 25,605.47 points, registering a gain of 0.34%. This performance marked a notable divergence from the Dow Jones Industrial Average, which declined by nearly 0.6%.

The upcoming Federal Reserve policy meeting on January 27-28 is set to command attention in the new trading week. Market pricing indicates a 71% probability that interest rates will remain unchanged, with investors instead focusing on potential signals regarding the pace of the central bank's balance sheet reduction. Additional market volatility is anticipated from Microsoft's quarterly earnings report, scheduled for release on January 28.

From a technical perspective, the Nasdaq 100 is approaching a significant juncture. Analysts are watching a key resistance band between 25,800 and 25,858 points. A decisive break above this barrier could pave the way for a test of the psychologically important 26,000 level. On the downside, support is currently seen around the 25,000-point mark.

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

Leadership and Laggards: A Stock-Specific Story

The index's advance was powered primarily by its largest constituents. Microsoft surged 3.28% to $465.95, delivering the single biggest boost to the benchmark. Investors appear to be positioning ahead of the company's quarterly results, speculating on positive updates regarding its artificial intelligence integration across product lines.

Nvidia also showed strength, climbing 1.54% to $187.68. Recent reports suggesting sustained Chinese interest in the company's H200 chips, despite existing export restrictions, signaled resilient demand dynamics. Amazon and Netflix contributed to the winning side as well, posting gains of 2.06% and 3.11%, respectively.

In stark contrast, Intel shares plummeted 17.03% to $45.07, dominating the loser's column. The chipmaker's disappointing forward guidance raised concerns over continued market share erosion within the critical data center segment.