Nasdaq Composite pressured by tech weakness into final 2025 session ahead of FOMC minutes

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Nasdaq traders position ahead of Fed policy release

Highlights

Nasdaq Composite trades near 23,480 amid megacap weakness and year-end profit-taking pressure
Monday dip buying at 23,400 keeps December gain alive into final trading session
FOMC minutes expected to shape rate expectations and tech outlook for 2026

The weakness in Nasdaq began last Friday after price failed to break through the 23,700 resistance level. That rejection triggered profit taking and year-end portfolio rebalancing across the broader equity market. The index extended losses into Monday, falling by 0.88% to a three-day low of 23,400. However, dip buying emerged at that level and helped lift the index by 75 points into the close, narrowing the day’s loss to 0.5%.

Nasdaq Composite price chart (July - Dec 2025). Source: Tradingview

Monday’s session reflected broad-based weakness across technology. Nvidia and Tesla each lost more than 1%, while Meta declined by 0.82%. Alphabet dropped 0.40%, Amazon fell by 0.23%, and Microsoft slipped marginally. These losses dragged the S&P 500 and Dow Jones Industrial Average into negative territory, posting declines of 0.24% and 0.09% respectively.

Dovish Fed minutes may spark late-session recovery and reclaim Monday losses

Investors are now focused on the Federal Reserve’s FOMC meeting minutes, set to be released later today. These minutes will provide a detailed account of the central bank’s December policy discussions, offering clues about potential interest rate decisions in 2026. The market is particularly sensitive to language that could influence expectations around rate cuts, as lower rates tend to benefit growth-oriented tech companies by reducing future cash flow discounting.

The Nasdaq’s monthly gain still holds at 0.47%, while the index is up 21.7% for the year. A dovish tone in the FOMC minutes may drive a late-session rebound and potentially reclaim Monday’s losses, especially if investors interpret the statement as a green light for earlier policy easing. Conversely, any signs of delay in cutting rates could extend the profit-taking wave. In that scenario, the 20-day exponential moving average near 23,330 becomes the first technical support to monitor. Price action around that level may determine if buyers are willing to step in before the calendar flips into January.

In recent analysis, we discussed how the Nasdaq Composite dropped below 23,500 after rejection from the 23,700 supply zone. Thinning volume and tech weakness stalled end-of-year positioning as traders awaited housing data.

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