Nasdaq Composite extends 6-day record streak despite overvaluation warnings

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Sholanke Dele

10.10.2025

Nasdaq Composite extends 6-day record streak despite overvaluation warnings — Nasdaq maintains momentum amid valuation risks

The Nasdaq Composite Index continued its record-breaking momentum this week, extending to a new all-time high at 23,060 on Thursday, October 9.

That marked the sixth straight trading session where the index expanded its record levels, though not all of those sessions ended in gains. The pattern highlights steady bullish strength driven by technology stocks, even as concerns about stretched valuations echo louder across global financial circles.

- Nasdaq extends record streak to 23,060, showing strong confidence in tech-driven earnings.

- RSI near 70 reflects measured strength, confirming controlled bullish momentum in equities.

-Light profit-taking signal institutional support behind Nasdaq’s record expansion.

Profit taking followed immediately after Thursday’s peak, causing the Nasdaq index to retreat to an intraday higher low at 22,900 before recovering slightly to close near 23,020. The brief decline lacked strong intensity, as reflected by the falling hourly volume, showing that selling was measured rather than panicked. The technical structure stayed intact, recording a second consecutive daily close above the 23,000 level, a key psychological and structural threshold that now acts as near-term support.

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

The broader narrative shaping this week’s rally has been a balance between enthusiasm for artificial intelligence–driven growth and mounting warnings about a potential bubble. The Bank of England, the IMF, and JPMorgan CEO Jamie Dimon have all expressed concern over asset overvaluation. Yet the sustained upward push of the Nasdaq reflects how bullish traders continue to ignore these warnings. For many investors, high valuations are justified by expectations of strong third-quarter earnings. Market sentiment is anchored on the view that robust results from mega-cap technology names will validate the optimism that has powered 2024’s historic rally.

Traders eye U.S. consumer sentiment data for cues on near-term resilience

Interestingly, daily traded volume through the first few days of October has risen steadily, showing that institutional participation is increasing rather than fading. This consistency in inflow contrasts the scepticism from global institutions and demonstrates confidence in continued earnings growth. The daily RSI has held near 70, marking sustained strength without fully entering overbought territory. That indicates controlled momentum, suggesting the rally is being paced rather than overextended.

Friday’s premarket session shows index futures edging higher as investors refocus on AI-led momentum while awaiting U.S. consumer sentiment data for fresh clues on economic resilience. Fundstrat’s head of research, Tom Lee, noted that the ongoing political turmoil, including concerns about a U.S. government shutdown, may ironically be viewed as supportive for equities. Investors perceive that any disruption to economic activity could make the Federal Reserve more dovish.

Overall, the Nasdaq’s persistent climb despite macro warnings and dollar strength reveals strong market conviction that near-term economic data and upcoming earnings will justify the continued expansion of growth stocks.

Recently, we discussed the Nasdaq closing at a record 22,940 after AMD surged 24% on its OpenAI partnership. The semiconductor sector rallied 3%, reinforcing 2025’s AI-driven optimism despite the U.S. shutdown.

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