Nasdaq Composite sees fragile premarket gain as traders brace for CPI, jobs data

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CPI, jobless claims set to shape Nasdaq outlook

Highlights

Nasdaq bounces 0.6% premarket but stays below EMAs amid bearish sentiment.
CPI and jobless data are expected to guide tech stock direction later today.
Micron guidance offers relief, but macro pressures still weigh on Nasdaq outlook.

Since that local top, the index has dropped over 1000 points to Wednesday’s session low of 22,690. Wednesday alone accounted for a 1.88% slide, translating to a drop of more than 400 points. The bulk of this downward move was driven by reports of a failed financing arrangement for a major $10 billion data center project in Michigan. The news dealt a heavy blow to several large-cap AI-linked stocks such as Oracle, Alphabet, Nvidia, and Broadcom, all of which weighed heavily on the Nasdaq index. Although some small caps posted gains on the same day, the overall index felt the pressure from the tech-heavyweights' decline.

Nasdaq price dynamic (Oct - Dec 2025). Source: Tradingview

Communication services and technology sectors were the weakest across the market, reinforcing a growing sense of sector-specific weakness. Notably, pressure from concerns about hiring slowdowns across the technology industry also weighed on the Nasdaq index. The selloff has caused a technical breakdown across multiple timeframes.

Investors await CPI and labor data as Nasdaq struggles below key EMAs

The Nasdaq Composite index is now trading below key moving averages on both the daily and four-hour charts. On the four-hour timeframe, price is clearly beneath the 20, 50, and 100 exponential moving averages, reflecting sustained selling pressure. More importantly, the daily RSI has slipped closer to the 40 level, while the four-hour RSI has declined to 35. These conditions suggest deepening momentum in the downward direction.

Week-to-date losses are approaching 2% as traders look ahead to the New York session. The broader reaction could depend on the market's interpretation of the CPI and jobless claims data scheduled for release. Futures edged higher during the premarket session in anticipation of those reports, as market participants seek clarity on the inflation outlook.

Micron Technology's strong forward guidance has now offered temporary relief to the tech sector, but the Nasdaq outlook in the later session of today hinges on the upcoming inflation and labor data. Expectations are for headline CPI to tick up from 3.0 to 3.1. However, the recent government shutdown may distort these figures. Therefore, greater attention may be placed on jobless claims due for the week ended December 13, which are expected to provide a more consistent view of labour market health.

In recent analysis, we discussed how Nasdaq extended losses as AI stocks dragged the index to a three-week low. EMA crossover near 23,300 limited upside while price consolidation preceded delayed U.S. data releases.

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