Nasdaq 100 Marks Time in Holiday Trading Lull

NASDAQ 100 US6311011026

The Nasdaq 100 index took a breather on Friday, closing essentially flat at 25,644 points. This pause followed a five-day winning streak, with thin holiday trading volumes failing to provide fresh momentum for a significant move. While Nvidia provided some uplift on acquisition speculation, Tesla shares acted as a drag on the tech-heavy benchmark.

Despite the sideways action, the technical picture for the index continues to look constructive. The Nasdaq 100 is trading comfortably above its key moving averages. The 25,600 level is serving as near-term support, with the day's high of 25,717 points representing the immediate resistance to overcome. The Relative Strength Index (RSI) has moderated from overbought territory, potentially creating room for further upward movement.

In the broader market, the yield on the 10-year U.S. Treasury note edged up slightly to 4.14%, maintaining a neutral backdrop for growth-oriented equities. The U.S. dollar held steady, while gold prices traded near record levels around $4,550 per ounce.

Holiday Session Lacks Catalysts

Trading activity was subdued, characteristic of the typical "Santa Claus Rally" period between Christmas and New Year. Volume was notably light, with approximately 185 million shares changing hands—well below the average—as institutional investors largely remained on the sidelines.

The index oscillated within a narrow range of 25,620 to 25,717 points throughout the session. This compressed volatility was reflected in the low level of the VIX volatility index, signaling a lack of market nervousness even as the Nasdaq 100 hovers near all-time highs. The shortened trading week leading into the New Year is also expected to remain quiet, though historical trends favor a seasonal tailwind that often extends gains into the first days of January.

Mixed Performance Among Heavyweights

Nvidia (NVDA) provided one of the few notable positive impulses, advancing 1.0% to $190.53. The move was fueled by reports that the chipmaker is considering a $20 billion acquisition of assets from AI startup Groq, a deal that would further cement its dominance in the data center business.

On the downside, Tesla (TSLA) was a notable laggard, declining 2.1% to $475.29. The drop occurred in the absence of any company-specific news to explain the weakness. Other mega-cap components also showed softness: Meta Platforms (META) shed 0.6%, while Microsoft (MSFT) and Alphabet (GOOGL) posted minor losses.

Sector rotation was muted, though semiconductor equipment stocks like Lam Research (LRCX), which gained 1.0%, found some favor.