Nasdaq Composite consolidates below 23,000 as Netflix and chip stocks weigh on sentiment

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Nasdaq Composite consolidates below 23,000

Highlights

Nasdaq consolidates near 23,000 as weaker Netflix and chip results limit investor optimism.

RSI and 20 EMA support suggest bullish bias despite temporary earnings-driven consolidation.

Tesla earnings could determine if Nasdaq breaks 23,000 resistance to retest record high.

On the technical side, the 20 EMA on the hourly chart continues to provide key near-term support at 22,900, helping the index hold its ground after an earlier rally. The RSI on the four-hour and daily charts is in bullish territory, indicating that momentum remains tilted toward the upside even as short-term consolidation persists. A sustained break above 23,000 could open the door for another push toward record levels, while a move below 22,900 may invite short-term profit-taking.

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

Market sentiment cooled after weaker-than-expected corporate results. Netflix dropped 6.8% in premarket trading after reporting third-quarter earnings below Wall Street estimates, a rare miss that raised concerns about consumer spending in the streaming sector. The disappointment from Netflix came as investors looked for strong guidance to justify valuations that are already stretched near record highs.

Traders watch Tesla results for signals on Magnificent Seven leadership

Tech weakness extended to the semiconductor sector after Texas Instruments forecast lower revenue and profit for the fourth quarter. The stock fell 8.7% in premarket trade, dragging peers lower. Microchip Technology lost 3%, while NXP Semiconductors and ON Semiconductor slipped more than 2% each. The outlook from chipmakers added a layer of uncertainty to the tech-heavy Nasdaq, suggesting that demand recovery across industrial and consumer electronics may be slower than previously anticipated.

Despite these setbacks, some mega-cap names provided limited support to the index. Tesla edged 0.4% higher ahead of its earnings release, which investors see as the next key test for the “Magnificent Seven” group of major tech stocks. The company’s performance could determine whether the Nasdaq can regain upward momentum before the week ends.

Overall, the index is still up over 1% for the week, showing resilience despite sector-specific weakness. If earnings from Tesla and other major companies meet expectations, the Nasdaq Composite could break above 23,000 and retest its record high at 23,120 before the week closes.

We discussed Nasdaq bulls eyeing the 23,120 record high as EMA crossovers reinforced short-term structure. Renewed buying momentum was backed by earnings optimism and easing credit fears.

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