Semiconductor Stocks Drive Nasdaq 100 Higher Amid Major Tech Investment

NASDAQ 100 US6311011026

A staggering capital expenditure plan from Amazon sent shockwaves through Wall Street on Friday. The tech giant announced its intention to invest $200 billion by 2026 into data centers and AI infrastructure, a figure that eclipses even typical technology-sector spending. In a swift market reaction, Amazon shares fell nearly ten percent. However, the most significant beneficiaries appear to be companies operating further down the supply chain.

Trading volume surged 15 percent above the daily average in the morning session. A substantial repositioning by institutional investors was evident, with capital flowing away from major platform companies and toward the key suppliers powering the artificial intelligence revolution.

In pre-market trading, the Nasdaq 100 index advanced 0.53 percent to 24,680 points. This upward momentum was fueled primarily by semiconductor equities. NVIDIA shares climbed 2.8 percent, Broadcom gained 2.5 percent, and Advanced Micro Devices (AMD) rose 2.1 percent.

The investment thesis is straightforward: a considerable portion of Amazon's massive spending initiative is expected to flow directly into GPU clusters and custom-designed chips. Fund managers are already positioning their portfolios to capitalize on the anticipated large-scale orders.

Cryptocurrency exchange Coinbase also saw a notable gain, jumping 5.8 percent. This move coincided with a recovery in Bitcoin to the $65,000 level, a rally supported by uncertainties in traditional fiat currency systems during the ongoing government shutdown.

Companies Facing Headwinds

Amazon itself bore the immediate cost of its ambitious strategy. Despite reporting solid quarterly figures, investors reacted negatively to the heightened capital intensity. The planned $200 billion investment, significantly above the anticipated $147 billion, represents a major draw on the company's free cash flow.

IQVIA Holdings declined 8.5 percent. Although the pharmaceutical services provider exceeded fourth-quarter expectations, it disappointed the market with its 2026 outlook. The company's earnings forecast of $12.55 to $12.85 per share fell well below the analyst consensus estimate of $12.96, with higher interest expenses cited as the primary cause.

Cummins stock dropped 7.5 percent. The engine manufacturer had surpassed predictions with an adjusted profit of $5.81 per share, but this was overshadowed by special depreciation charges in its electrolyzer business and a cautious outlook for the North American truck market.

Postponed Data Shifts Trader Focus

A key macroeconomic event was removed from the day's calendar. The Bureau of Labor Statistics postponed the release of its monthly employment report until February 11th, a direct consequence of the government shutdown.

This leaves the Federal Reserve to navigate monetary policy without the latest labor market data, increasing the likelihood of hawkish commentary from Fed officials. The CBOE Volatility Index (VIX) edged slightly lower, but underlying market uncertainty persists.

From a technical perspective, the Nasdaq 100 is trading within a range, with support near 24,450 points and resistance around 24,800. The Relative Strength Index (RSI) sits at 42, while the Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover. In the absence of the jobs report, trading volume is expected to taper off in the afternoon session, as many traders are reluctant to carry open positions into a weekend dominated by shutdown headlines.