Will the Nasdaq 100 Continue Its Correction?Nasdaq 100 SPOTCFI:US100CFIFundamental outlook Technology stocks continue to face a combination of factors that are keeping investors cautious, chief among them the ongoing uncertainty surrounding the path of US monetary policy. Continued strength in economic data or a renewed rise in inflationary pressures could prompt the Federal Reserve to keep interest rates elevated for longer, weighing on the valuations of growth companies, particularly the technology stocks that make up a large portion of the Nasdaq 100. Meanwhile, investors are closely watching the upcoming earnings reports from major technology companies. Management guidance on artificial intelligence spending and revenue growth is expected to be one of the key drivers determining the index's next direction. At the same time, developments related to tariffs and global trade remain potential sources of market volatility, particularly for the semiconductor industry and global supply chains. In addition, profit-taking in semiconductor stocks, which have been the primary driver of the AI-led rally over recent months, has added further pressure on the Nasdaq. This comes as investors increasingly question whether the massive investment in AI infrastructure can generate returns that justify current elevated valuations. At the same time, some investors have begun shifting their attention toward cloud computing companies and hyperscalers, such as Microsoft, Amazon, and Alphabet, as potential beneficiaries of the next phase of AI, with the market's focus gradually moving from building AI infrastructure to generating revenue from AI applications. Technical Outlook The Nasdaq is trading within a downtrend, forming a sequence of lower highs and lower lows, reflecting continued bearish momentum and seller dominance in the short term. Traders are closely watching the 28,187.67 level, which has served as a key support level since June 26, 2026. A confirmed break and close below this level could open the door for further selling pressure and a decline toward lower price levels.