Nasdaq Composite shrugs off major tech stock dip to new record close

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Sholanke Dele

08.08.2025

Nasdaq Composite shrugs off major tech stock dip to new record close — Nasdaq holds gains despite tech stock dip

The Nasdaq Composite Index closed at a new record high of 21,242 on Thursday, despite an intraday dip caused by sharp declines in Microsoft and Meta shares.

The index initially surged to a high of 21,410, just shy of the all-time peak at 21,460. This early push was driven by optimism that leading chipmakers might sidestep new tariffs by shifting manufacturing operations to the United States. However, the rally was interrupted as Meta dropped 1.3% and Microsoft lost 0.8%, pulling the index down to 21,088 before a technical bounce restored bullish momentum.

- Nasdaq Composite bounces off 20 EMA despite drag from Meta and Microsoft

- Hourly RSI and daily volume growth suggest sustained buying interest

-The tech-heavy index eyes to break above 21,410 as earnings momentum keeps upside bias

The recovery was aided by strong support at the hourly 20 exponential moving average, which acted as a springboard for price. Despite the session's volatility, the index managed to register a 0.4% daily gain and extend its week-to-date increase to 2%. Notably, each of the past four days has printed higher volume readings, a sign of growing participation that typically confirms a legitimate price move. This price-volume relationship strengthens the bullish narrative on the Nasdaq Composite.

Nasdaq price dynamic (June - August 2025). Source: Tradingview

From a fundamental perspective, markets have largely shrugged off the White House's announcement of new tariffs targeting countries without trade agreements with the U.S. Instead, investor focus has remained on positive earnings surprises across the tech sector and resilient demand across consumer staples, utilities, and materials. Financials, however, have lagged due to volatile expectations surrounding future interest rate moves.

Nasdaq RSI and rising volume confirm trend strength

Technically, both the hourly and daily Relative Strength Index readings are sitting comfortably in bullish territory. The hourly RSI has crossed above its 14-period average and is now pushing through the 60 level, suggesting a potential continuation to the upside. The presence of consistent higher lows on the intraday charts supports the idea that institutional buyers are still active during price dips.

If the Nasdaq Composite finds another bounce off the hourly 20 EMA, short-term traders may target a retest of the previous day’s high at 21,410. Breaking above that level could open the path toward challenging the all-time high at 21,460. However, failure to break above 21,410 could invite a temporary pause or slight retracement.

Looking ahead, the absence of fresh negative catalysts combined with strong sector rotation suggests the index still has room to edge higher. Any sustained move above 21,410 may attract further momentum traders, increasing the likelihood of a new record being printed above the 21,460 barrier in the sessions ahead.

Nasdaq dropped after the ISM Services Index missed expectations and raised fresh stagflation concerns. The index stalled at 21,060 as RSI signalled more sideways movement.

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