The Nasdaq-100 ended the week on a weaker footing as selling pressure intensified across large-cap technology shares. From Monday through Friday, market sentiment turned more cautious, reflecting renewed concerns over monetary policy, stretched valuations, and the sustainability of recent gains in growth-oriented assets.

Weekly Performance Signals Cooling Momentum

The index closed Friday near 25,197, marking a weekly decline of approximately 1.9%. After trading close to record levels earlier in the week, the Nasdaq-100 reversed course sharply, with several high-weight constituents contributing disproportionately to the downside. Intraday volatility increased notably during the second half of the week, suggesting that investors were actively reducing exposure rather than passively holding through the pullback. Compared with the S&P 500 and Dow Jones Industrial Average, the Nasdaq-100’s losses underscored its sensitivity to changes in risk appetite.

Rates and Policy Expectations Drive Repricing

A central driver of the week’s decline was renewed focus on U.S. interest rates and their implications for growth stocks. Even modest increases in Treasury yields can pressure long-duration assets, and the Nasdaq-100’s heavy tilt toward technology amplifies this effect. As expectations for aggressive Federal Reserve rate cuts were moderated, investors adjusted valuation assumptions, leading to multiple compression across parts of the index. This dynamic highlights how macroeconomic signals continue to exert outsized influence on technology-led benchmarks.

Global Context and Implications for Israeli Investors

The Nasdaq-100’s weakness unfolded alongside broader risk-off signals in global markets, including rising volatility and uneven performance across equities and currencies. For Israeli and international investors, movements in the Nasdaq-100 are closely watched due to the index’s role as a bellwether for global technology trends and cross-border capital flows. Many Israeli technology firms and institutional portfolios are indirectly exposed to Nasdaq-100 dynamics, making weekly shifts in sentiment particularly relevant for portfolio risk management and currency considerations.

Looking ahead, attention will remain centered on upcoming inflation readings, central bank communications, and the trajectory of bond yields. A stabilization in rates could help restore confidence in growth assets, while further upward pressure may prolong volatility in the Nasdaq-100. In the near term, investors will be monitoring whether the index can consolidate above key technical levels or whether additional downside emerges as markets recalibrate expectations for earnings growth and monetary policy.