Nasdaq Stumbles as Fed Jitters Mount, Intel Soars, Tariffs Rattle Tech Markets

Key Facts:

Three-Day Slide: U.S. stocks fell for a third straight session on Thursday. The Nasdaq Composite lost about 0.5% to 22,384.70 ^[1] (Nasdaq-100 similarly dipped), erasing record highs set earlier in the week ^[2]. The S&P 500 and Dow also declined ~0.5% and 0.4% respectively ^[3] amid broad profit-taking in equities.
Hot Economic Data vs. Rate Cuts: Surprisingly strong U.S. economic reports – including an upward revision of Q2 GDP growth to +3.8% (from 3.3%) and a drop in weekly jobless claims to 218,000 ^[4] ^[5] – cast doubt on how aggressively the Federal Reserve will ease policy. The 10-year Treasury yield jumped to ~4.17% and the U.S. dollar index hit a one-week high near 98.5 ^[6] ^[7], underscoring expectations that interest rates may stay higher for longer.
Tech Winners and Losers: The tech sector saw mixed fortunes. Intel stock surged ~9% to lead the Nasdaq after reports that the chipmaker is seeking strategic investments – including a potential stake from Apple – to bolster its foundry business ^[8]. In contrast, Oracle shares tumbled ~5% after a Wall Street firm issued a rare “Sell” rating on the stock, sparking a third day of declines ^[9]. Tesla also slid over 4% amid profit-taking and rising EV competition, while Apple fell nearly 2% on valuation concerns ^[10] ^[11].
Earnings Highlights: Several Nasdaq-listed companies reported results. Retail giant Costco beat expectations with fiscal Q4 earnings of $5.87 per share on $86 billion in revenue, up ~9% year-over-year ^[12]. CarMax, however, plunged 20% – the S&P’s worst performer – after the used-car retailer’s quarterly profit and sales badly missed estimates ^[13]. Consulting firm Accenture topped revenue forecasts but its stock fell ~3% on cautious guidance ^[14], and Micron Technology posted record chip sales yet saw shares drop 3% as the post-AI-boom enthusiasm cooled ^[15].
Tariff Shocks Hit Pharma: In a surprise move, President Donald Trump announced sweeping new tariffs to take effect Oct. 1 – including 100% duties on imported branded pharmaceutical drugs, a 25% tariff on heavy trucks, and 30–50% tariffs on categories like kitchen cabinets and furniture ^[16] ^[17]. The news rattled global markets: Asian pharmaceutical stocks tumbled (Japan’s pharma index –1.2%, Hong Kong’s biotech index –2%) ^[18], and industry analysts noted that details on exemptions remain scarce.
Fed’s Mixed Signals: Federal Reserve officials struck a cautious tone in public remarks. Chicago Fed President Austan Goolsbee said he’s uneasy about cutting rates “too quickly” with inflation still above target, despite supporting last week’s rate cut ^[19]. Conversely, newly appointed Fed Governor Stephen Miran argued the economy is vulnerable and urged sharper rate cuts to avert a labor market “collapse” ^[20]. Traders responded by trimming bets on further easing – futures now imply slightly fewer rate reductions by year-end than a week ago ^[21].
Market Outlook: Investors are looking ahead to Friday’s release of the Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation gauge – as a next crucial signal ^[22]. With another key U.S. jobs report due next week, many analysts expect continued market volatility. “The economic data…calls into question how much the Fed may cut rates again this year,” noted Peter Tuz of Chase Investment Counsel ^[23]. Still, bulls argue that easing price pressures or a gentle Fed could rekindle the tech rally, as “one big positive is it seems like the government is going to let big tech get bigger,” said Rick Meckler of Cherry Lane Investments ^[24].

Nasdaq and Indexes Retreat from Highs

Wall Street’s momentum faltered in the latter half of this week, with the Nasdaq Composite and Nasdaq-100 both posting their third straight daily loss on Thursday. The Nasdaq Composite closed at 22,384.70 (down 0.5%), and the S&P 500 and Dow Jones also fell around 0.5% and 0.4%, respectively ^[25]. These declines marked a sharp reversal from Monday, when all three indices notched record-high closes ^[26] after a months-long tech-driven rally. Traders say the pullback partly reflects investors locking in profits on big tech names that had run up dramatically through the summer. The CBOE Volatility Index (VIX) – Wall Street’s “fear gauge” – remains relatively low (around the mid-teens), but market breadth turned negative as decliners outnumbered gainers by about 3-to-1 on the Nasdaq exchange ^[27], indicating more stocks are participating in the downdraft.

Notably, energy stocks provided a rare bright spot. The S&P 500 energy sector jumped nearly 1% on Thursday ^[28], bolstered by rising oil prices (more on that below). But most other sectors slumped. High-valuation growth shares were under particular pressure as Treasury yields climbed, increasing the cost of capital. “Historically we’re certainly at the high end” of equity valuations after this year’s run-up, “but one big positive is it seems like the government is going to let big tech get bigger,” observed Rick Meckler, partner at an investment firm in New Jersey ^[29]. His comment alludes to a perception that U.S. regulators and officials have so far avoided heavy-handed actions that might constrain tech giants’ expansion – a factor that has encouraged investors to keep bidding those stocks higher. However, Fed Chair Jerome Powell’s recent warning that asset prices (especially in tech) appear “fairly highly valued” by many measures ^[30] has given some market participants pause. That caution from the Fed chief, combined with fresh macroeconomic curveballs, set the stage for this week’s volatility.

Fed Policy Uncertainty Roils Sentiment

Mixed economic signals and shifting Fed expectations were a major catalyst behind the Nasdaq’s stumble. On one hand, the U.S. economy continues to show remarkable resilience: the Commerce Department revealed that second-quarter GDP grew at a 3.8% annual pace, even faster than previously estimated ^[31]. Additionally, orders for core durable goods (a proxy for business investment) unexpectedly rose in August, and weekly jobless claims fell to their lowest since early August (218,000 vs. ~235,000 expected) ^[32]. These upbeat indicators suggest consumer spending and labor demand remain robust. Normally, strong growth is good news – but in today’s context, it is fueling concern that the Federal Reserve may not deliver the extensive series of interest rate cuts that stock bulls had been banking on.

Last week, the Fed implemented its first rate cut of 2025 (25 basis points) amid some signs of a cooling job market. Investors initially cheered, and futures markets even priced in 3–4 more cuts by mid-2026. But the tide shifted as data outpaced forecasts. “Robust economic data – such as stronger durable goods orders and an upward revision to GDP – has shifted expectations around future rate cuts and driven the dollar higher,” explained Shier Lee Lim, lead FX and macro strategist at Convera ^[33]. In other words, the economy’s strength is giving the Fed room to be cautious, dampening hopes for a rapid easing cycle. U.S. Treasury yields jumped in response: the benchmark 10-year yield hit 4.17% Thursday, the highest in over a week ^[34], and short-term (2-year) yields also climbed. The U.S. dollar index surged about 0.7% this week to around 98.5, a level not seen since early 2022 ^[35]. A firmer dollar and higher yields tend to pressure tech and growth stocks, which are sensitive to financing costs and often priced on future earnings.

Meanwhile, Fed policymakers sent mixed messages in their speeches. Austan Goolsbee, president of the Chicago Fed, voiced support for last week’s cut but cautioned that he’s “not eager to do a lot more” easing with inflation still above target ^[36]. In a discussion on Thursday, Goolsbee said it’s important not to cut rates “too quickly” and risk reigniting price pressures. This hawkish tone was echoed by other regional Fed presidents in recent days, emphasizing that while inflation has come down from its peak, it remains above the Fed’s 2% goal. In contrast, newly appointed Fed Governor Stephen Miran – an economist aligned with the administration’s more dovish camp – argued that the Fed needs to act faster to cut rates, warning that high real interest rates are making the economy “more vulnerable to shocks” ^[37]. Miran on Thursday advocated sharper rate reductions to prevent a potential “labour market collapse” if conditions deteriorate ^[38].

The push-pull between these views has left investors torn. Rate-cut probabilities for the Fed’s next meeting in late October have slipped – the implied chance of another 0.25% cut is about 83% now, down from 92% a day earlier ^[39]. Beyond that, traders are pricing in a total of roughly 1.5 percentage points of additional cuts by the end of 2026, slightly less easing than anticipated a week ago ^[40]. “The economic data that’s come out…is kind of confusing in that it calls into question” how much more the Fed will ease this year, observed Peter Tuz, president of Chase Investment Counsel ^[41]. Wall Street is now anxiously awaiting Friday’s PCE inflation report, which could either reinforce the case for patience or revive hopes that disinflation will give the Fed cover to cut rates more quickly. As Jerome Powell reiterated in a speech this week, the Fed will be carefully balancing the risk of resurgent inflation against signs of a weaker job market in coming decisions ^[42]. In short, the central bank’s next moves remain a wild card – and that uncertainty has injected volatility into the interest-rate-sensitive tech sector in particular.

Tech Stocks in Turmoil: Intel’s Surge vs. Big-Name Slumps

The Nasdaq’s troubles this week were concentrated in its technology heavyweights, which experienced divergent fates amid changing fundamentals and a reevaluation of lofty valuations. On the positive side, Intel (INTC) delivered an unexpected boost. The semiconductor giant’s stock soared 8.9% on Thursday – its biggest one-day jump in years – following reports of potential strategic partnerships ^[43]. According to media leaks, Intel has been in talks to secure outside investments to support its ambitious chip manufacturing expansion. Bloomberg reported that Apple discussed possibly taking a stake in Intel’s business ^[44], while a Wall Street Journal scoop said Intel approached Taiwan’s TSMC about investing in its semiconductor facilities. Either move would be significant: Apple was once a major client of Intel’s chips (before shifting to its own silicon), and TSMC is the world’s leading chip foundry. The mere prospect of deep-pocketed partners helped send Intel shares to around $40 – a welcome development for a stock that has lagged its peers amid fierce competition. Intel’s surge also buoyed the Philadelphia Semiconductor Index, but other chipmakers did not fare as well. Micron Technology (MU), for instance, fell ~3% even after announcing record quarterly revenues, as analysts warned that memory-chip demand could plateau and that AI-fueled euphoria in the chip space may be moderating ^[45].

On the downside, several former high-fliers hit air pockets. Oracle (ORCL) shares sank roughly 5–6% to their lowest levels in a month ^[46]. The enterprise software maker has been a big winner from the cloud and AI boom, but its recent earnings outlook underwhelmed investors, and on Thursday a research firm (identified in reports as Redburn) initiated coverage with a “Sell” rating – a rare bearish call on Oracle. The skeptical view is that Oracle’s valuation had run well ahead of its fundamentals, and that the market may be overestimating the near-term boost from AI cloud contracts. Oracle’s decline this week marks its third consecutive daily drop ^[47], erasing gains it made after announcing a partnership with Microsoft on cloud services earlier in the month. Similarly, Tesla (TSLA) – another stock that had been on a tear – skidded more than 4% Thursday ^[48]. The electric vehicle leader’s market share in the U.S. has been slipping as competitors roll out new EV models ^[49], and some investors took profits after a 25% surge in Tesla’s stock over the past month. Tesla’s high valuation also makes it sensitive to rising interest rates. The Motley Fool noted that Tesla’s recent delivery figures hinted at slowing sales growth, contributing to the pullback as well ^[50].

Other tech titans showed relative resilience but were not immune. Apple (AAPL), which had climbed back near record highs, ended down about 1.8% ^[51]. Part of that dip came as traders digested the Intel news – any Apple investment in Intel’s chip manufacturing might signal a shift in Apple’s supplier strategy – and part from general worries about device demand in a high-rate environment. Amazon.com (AMZN) was flat to slightly lower on the week, despite a major legal development: the company agreed to pay $2.5 billion to settle an FTC lawsuit alleging it duped customers into signing up for its Prime service ^[52]. The settlement includes $1.5 billion for customer refunds, but Amazon’s stock barely budged on the news, underscoring that the one-time charge is trivial for a company of Amazon’s size (about what it grosses in 33 hours) ^[53]. Over the past month, Amazon shares have already been weighed down by a broader DOJ antitrust case, so the Prime settlement’s resolution at least removes one uncertainty. Meta Platforms and Alphabet (Google) saw modest declines of 1–2% this week amid the general tech swoon, though no major company-specific news hit those names. Notably, Nvidia (NVDA) – 2023’s AI poster child – has also cooled off; it slipped roughly 1% in recent sessions ^[54] as investors debate whether the phenomenal demand for AI chips can sustain its stock’s rich valuation.

Beyond the mega-caps, there were pockets of strength in tech. Chip-equipment maker Applied Materials and some smaller semiconductor firms notched gains, riding Intel’s coattails. And outside of Nasdaq, IBM shares jumped 5% after HSBC disclosed a successful trial using IBM’s quantum computing systems for bond trading algorithms ^[55] – a sign of confidence in “Big Blue” reinventing itself in cutting-edge tech. Overall, however, the tech sector’s advance has paused, and analysts say this is a healthy breather. The NASDAQ-100 index is still up double-digits percentage-wise in 2025, but this week’s stumbles show that even the AI and cloud darlings are not invincible. “By many measures… equity prices are fairly highly valued,” Fed Chair Powell warned, specifically citing the lofty pricing of tech stocks ^[56]. That message – that valuations need to be justified by earnings, not just hype – seems to be sinking in. The coming weeks will determine whether Big Tech’s recent dip is a temporary wobble or the start of a deeper revaluation.

Earnings Roundup: Costco Shines, CarMax Stalls

A slate of corporate earnings reports also drove stock-specific moves in the Nasdaq arena. Kicking off the retail sector, Costco Wholesale (COST) delivered strong results that reinforced its status as a consumer staples stalwart. For the quarter ended August 31, Costco’s net sales jumped to $84.43 billion from $78.2B a year prior, boosting quarterly profit to $2.61 billion (about $5.87 per share) ^[57]. Both revenue and EPS modestly beat Wall Street’s forecasts. The warehouse club benefited from steady member renewal rates and growth in its higher-tier memberships; it also managed inventory well in categories like appliances and electronics, even as some competitors struggled with oversupply. Costco noted plans to open 35 new warehouses in the coming fiscal year, underscoring its expansion. The stock edged down 0.2% in Thursday’s regular session ahead of the earnings release ^[58], but analysts on the conference call sounded encouraged by Costco’s ability to maintain sales momentum despite broader consumer spending shifts. Early reports indicated shares rose after hours on the earnings beat (up about 1%). Executives did flag slightly shrinking gross margins – a sign Costco is holding down prices to deliver value to customers – but investors seem comfortable with that trade-off given Costco’s consistent growth.

In contrast, the readout from used-car retailer CarMax (KMX) was far less upbeat. CarMax reported a sharp drop in second-quarter profit as higher financing costs and still-elevated used vehicle prices hurt demand. Both sales and earnings fell well short of analyst estimates, sending CarMax shares plunging 20.1% to a five-year low ^[59] ^[60]. It was the single biggest one-day loss for any S&P 500 component. CarMax’s CEO Bill Nash acknowledged on the earnings call that consumer affordability challenges and a “pull-forward” of used-car demand earlier this year have created a tough environment ^[61]. The company also built up inventory expecting stronger sales that didn’t materialize, forcing it to cut prices. Despite the rout, some analysts note CarMax is well-positioned long-term due to its online sales investments and nationwide footprint; but in the near term, the market is clearly punishing any retailer missing expectations. CarMax’s slump dragged down other auto retailers and underscored the bifurcated consumer economy – while higher-end retailers like Costco and certain luxury brands are weathering inflation, those reliant on big-ticket financing (like cars) are feeling the pinch of high interest rates.

Elsewhere, Accenture (ACN) – the global consulting and IT services giant – reported fiscal Q4 revenue above expectations, thanks to strength in its cloud and security segments. However, its cautious guidance for the coming year (citing slower corporate spending on big projects) disappointed the Street. Accenture’s stock fell 2.7% despite the beat ^[62]. The company also announced a plan to streamline operations, and investors may be waiting to see if cost cuts can offset the macro headwinds in the consulting industry.

Among tech-adjacent firms, Jabil Inc. (JBL) (an electronics manufacturer for hire) posted solid earnings and raised its dividend, yet its stock dropped around 6–7%. Traders noted that Jabil has exposure to Apple’s supply chain and data-center hardware; while AI-related demand is helping some of its business, the company warned of softness in automotive electronics and other areas ^[63]. It appears some profit-taking hit Jabil after a run-up earlier this year.

There was also news in the consumer and tech crossover space. Starbucks (SBUX) shares slipped about 0.5% ^[64] after the coffee chain announced it will lay off 900 corporate employees and close some underperforming stores as part of a streamlining plan. Starbucks’ CEO emphasized that front-line retail staff won’t be affected by the corporate cuts, and that the company will continue investing in its cafe experience and new beverage innovations. Investors largely took the news in stride – the layoffs indicate cost discipline, but also hint at growth challenges in a saturated U.S. market.

Finally, Nike (NKE) – while not a Nasdaq component (it’s in the Dow) – deserves mention as it reported earnings late Thursday that beat forecasts, driven by strong demand in Europe and improved profit margins. Nike’s results, along with Costco’s, suggest that consumer demand is holding up better than feared in some areas, even as interest rates rise. These reports will feed into the broader market narrative as we head into the next earnings season: investors are keen to see if tech sector earnings can justify the Nasdaq’s high valuations, and if consumer-linked companies can manage through the Fed’s inflation fight. So far, the picture is mixed, which is contributing to stock pickers rotating between winners and losers rather than lifting all boats.

Global Forces: Tariffs, Trade Tensions & Oil Prices

Beyond U.S. data and earnings, global developments played an important role in Nasdaq’s late-week swings. Chief among them was a dramatic escalation in trade tensions. President Trump took to social media on Thursday to unveil a new round of U.S. tariffs targeting a range of imports. In an aggressive move aimed largely at major trading partners, the administration will impose 100% tariffs on imported brand-name pharmaceuticals ^[65] – effectively doubling their cost – and steep new tariffs on certain heavy trucks (25%), bathroom vanities (50%), and upholstered furniture (30%), among other items ^[66]. All these levies are set to kick in on October 1, just days from now, under national security justifications. The announcements blindsided many investors and companies, coming on the heels of an ongoing U.S.-China trade truce.

The market reaction was swift. In Asia on Friday, stocks slid broadly. Japan’s Nikkei index fell about 0.6%, and Hong Kong’s Hang Seng lost 0.5% ^[67], with outsized drops in healthcare shares. A regional index of Asian pharmaceutical companies plunged over 2% at one point ^[68]. European markets also wobbled: the pan-European STOXX 600 closed down 0.66% on Thursday, hitting its lowest level in three weeks ^[69]. Medical technology stocks in Europe were under pressure after news that the U.S. had opened new import probes (reportedly to scrutinize foreign medical device suppliers) ^[70]. The sudden U.S. tariff salvo especially unnerved drugmakers – many of which are global companies – as it raised questions about supply chains and pricing.

“We were bracing ourselves for sectoral tariffs on pharmaceuticals… the key thing is details are still scant at this stage,” said Khoon Goh, head of Asia research at ANZ, noting uncertainty about whether these duties will stack on top of existing tariffs or spare allies ^[71]. He pointed out that if only branded/patented drugs are targeted, the impact might be focused on big pharma exporters in places like Europe and Canada, whereas generic drug suppliers (e.g. from India) could be less hit. Initial knee-jerk selling hit the pharma sector across the globe, and Goh added, “most likely we’ll see a continuation of the equity market weakness… as investors take a cautious approach” ^[72]. U.S. pharma giants (many listed on Nasdaq) could also face retaliatory risks or higher input costs, though more clarity is needed.

The tariff news underscores how geopolitical risks remain a wildcard for markets. It comes just after the U.S. and China had shown signs of easing trade friction earlier in the year. Now, investors are worrying about a potential tit-for-tat response from affected countries. Already, there are reports that China is reassessing some U.S. market access for its firms. In a symbolic shift, Chinese autonomous driving startup Momenta – which had been approved to list shares in New York – is now considering Hong Kong for its IPO instead ^[73]. Sources say rising U.S.-China tensions and stricter audit scrutiny in the U.S. have prompted Momenta and other Chinese tech firms to favor Hong Kong or Shanghai listings ^[74]. This trend could deprive the Nasdaq of some future high-profile tech IPOs, though U.S. exchanges have seen a resurgence of domestic listings this year. So far in 2025, there have been 251 U.S. IPOs (up ~79% from last year) ^[75], suggesting that even if Chinese deals pull back, the pipeline – especially from tech and biotech – remains active.

On the commodities front, one major macro positive has been surging oil prices, which supported energy stocks even as tech faltered. Oil benchmarks are on track for their biggest weekly gain in three months ^[76]. International Brent crude traded around $69.5 per barrel Friday – up about 2% for the week – while U.S. WTI crude hit $65+, continuing a sharp rebound from summer lows ^[77]. The rally has been fueled by supply cuts: Russia unexpectedly banned exports of gasoline and diesel fuel to most countries in an effort to stabilize its domestic market, tightening global supply just as demand remains solid ^[78]. OPEC producers have also stuck to output curbs. Higher oil is a two-edged sword: it boosts profits for oil & gas companies (hence the jump in the energy sector stocks), but it can rekindle inflation concerns if gasoline prices spike for consumers. So far, the market seems to view the oil rise as manageable – Brent at ~$70 is far below last year’s highs, and U.S. gas prices, while up, are not at crisis levels. Gold, often a haven asset, pulled back slightly to around $3,745 an ounce ^[79], consolidating after hitting a record high earlier this week. And in currency markets, the Japanese yen weakened to nearly ¥150 per U.S. dollar ^[80], a level that in the past has prompted Japanese officials to consider intervention to support the yen. The dollar’s strength (partly Fed-driven) is creating strains for some emerging markets and could become a bigger story if it continues – for now, it mostly reflects the U.S. economy’s relative robustness and higher interest rates attracting capital.

In summary, international developments – from tariffs to energy supply moves – are increasingly influencing U.S. market sentiment. The Nasdaq, with its heavy weighting of globally interconnected tech firms, is not immune to these cross-currents. Trade policy uncertainty can hit companies like Apple, Qualcomm, or biotech firms that rely on global supply chains or overseas sales. Investors will be monitoring diplomatic headlines closely as we enter the final quarter of 2025.

Expert Analysis and Market Forecasts

After this week’s turbulence, what’s next for the Nasdaq and broader market? Much will depend on the upcoming data and how the Fed responds. The immediate focus is Friday morning’s PCE inflation report, which will show whether price pressures continued to ease in August. The Fed’s preferred core PCE index was running at 4.2% annually as of July – still above target, but trending down. If the new PCE reading shows a meaningful drop, it could bolster the case for more Fed rate cuts and cheer markets. Conversely, a sticky inflation number might reinforce the hawkish voices at the Fed and add to stock market jitters. Next week’s docket brings the September jobs report (with nonfarm payrolls and unemployment rate), another critical health check on the economy.

Market strategists are offering a variety of views. Some caution that after the Nasdaq’s roughly 35% year-to-date surge (as of mid-September), a period of consolidation or even a mild correction is actually normal and healthy. “There was some bullish optimism built into markets…everyone started thinking we’re going to get 4–6 rate cuts. Now I think we’re looking at four at most, and maybe even that seems generous,” observed Tony Sycamore, a market analyst at IG, suggesting that investors have adjusted to a scenario of fewer Fed rescue measures ^[81]. That recalibration could mean more choppy trading ahead, as stocks seek a new equilibrium. Indeed, the Nasdaq’s three-day slide brought it off about 2% from its peak – a relatively small dip that some say could widen if earnings or economic news disappoints. A few analysts have warned that valuation multiples on big tech names remain stretched; any further rise in bond yields might force a bigger pullback in those stocks.

On the other hand, there are still supportive factors that could help the Nasdaq regain footing. Corporate earnings growth, while slowing from the breakneck pace earlier this year, is still positive for many tech firms, and Q3 earnings season (which kicks off in October) may show that AI and cloud spending trends remain strong. Consumer demand has held up in important areas – as seen with Costco and Nike – which bodes well for companies reliant on end-user spending. Importantly, many on Wall Street believe the Fed’s tightening cycle is at or near its end. If inflation continues to cool, the Fed might even pause on further rate cuts to assess, rather than slamming the brakes on the economy. Matt Stucky, a portfolio manager at Northwestern Mutual, noted that to really propel equities higher broadly, “you need a continuation of the momentum that’s been built over the summer in terms of the Fed easing – and easing materially through 2026” ^[82]. In other words, the market’s next leg up likely hinges on confirmation that interest rates will indeed head lower over the coming year or two, relieving pressure on valuations.

For now, market sentiment is cautious but not panicked. The fact that defensive sectors like utilities and consumer staples have not dramatically outperformed suggests that investors aren’t fleeing equities altogether – they’re rotating and recalibrating. Volatility may tick higher around key events (like the PCE release and Fed meetings), but the backdrop of a growing economy with moderating inflation is far from a bear-case scenario. One noteworthy development is that despite this week’s wobble, global investors are showing renewed interest in U.S. assets, given America’s economic resilience. Equity inflows have been positive in recent weeks, and some fund managers who were underweight U.S. stocks are now “jumping back in”, according to Reuters analyses ^[83]. The U.S. market’s outperformance in 2025 has taken many by surprise, and there is a sense that dips will be bought as long as the recession is avoided.

In conclusion, the Nasdaq’s latest news cycle – featuring Fed policy twists, tariff turns, and big stock moves – encapsulates the crosswinds investors face. High-growth tech stocks are at a crossroads between extraordinary innovation and plain old financial gravity. Macroeconomic policy is in flux, with the Fed walking a tightrope. And external shocks from geopolitics or commodities can arrive suddenly, as Trump’s tariff bombshell reminded everyone. The next few days and weeks will be crucial in determining if the Nasdaq’s September stumble is just a blip or the start of a more prolonged cooldown. For now, many experts advise a dose of caution. “U.S. equities have sold off modestly as rate cut optimism fades,” as Convera’s Lim summed up ^[84], but there’s also recognition that the market still has fundamental pillars of support. Investors will be closely watching the Fed’s messaging and the earnings from tech bellwethers (like Micron’s peers and upcoming reports from the likes of Apple, Amazon, Google in late October) for clarity. If the inflation data cooperates and Fed officials strike a balanced tone, the Nasdaq’s uptrend could yet resume. If not, further turbulence may be in store. Either way, the final quarter of 2025 is poised to be an eventful one for Nasdaq traders and the broader investing public.

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