\Nasdaq Hits 60-Day Streak as Tech Stocks Face Valuation Test

Tech stock momentum pushes Nasdaq index to historic 60-day moving average streak amid growing valuation concerns

Key Takeaways

• Nasdaq 100 hits 60-session streak above its 20-day moving average, marking the second-longest run since 1985 and signaling potential market turbulence ahead according to BTIG analysts.
• Global IT spending projected at $5.75 trillion in 2025, representing a 9.3% increase driven by AI investments, cloud infrastructure, and digital transformation across enterprises.
• Major tech earnings this week include Alphabet on Wednesday and Tesla on Wednesday, with analysts monitoring AI progress, cloud growth, and margin pressures amid elevated market valuations.

Introduction

The Nasdaq 100 reaches a historic milestone by trading above its 20-day moving average for 60 consecutive sessions, triggering warnings from market strategists about impending volatility. BTIG analyst Jonathan Krinsky identifies this streak as the second-longest since 1985, with the previous record ending in early 1999 before significant market disruption.

Technical indicators now suggest the technology-heavy index approaches potential exhaustion levels. The confluence of seasonal factors, elevated valuations, and earnings season creates conditions that analysts describe as ripe for increased market turbulence.

Key Developments

Technical analysis reveals multiple warning signals converging simultaneously. Weekly Bloomberg candle sessions show a 12 count for the Nasdaq 100, approaching the December 2024 peak of 13 that marked a previous inflection point.

The BUZZ index displays a 15-week rate-of-change at 62%, surpassing levels from the zero interest rate policy period of 2020-2021. This metric indicates momentum that historically precedes market corrections or increased volatility periods.

Seasonal patterns add another layer of concern for strategists. “Seasonals aren’t bearish yet, but the best stretch of the summer is now behind us,” notes BTIG’s Krinsky. The timing coincides with second-quarter earnings season, where corporate performance faces scrutiny against elevated market expectations.

Market Impact

Current market conditions reflect a delicate balance between strong fundamentals and stretched valuations. Adam Crisafulli of Vital Knowledge expresses caution about the S&P 500’s current levels, citing “underappreciated tariff/inflation risks and elevated valuations” as primary concerns.

Despite these warnings, corporate earnings continue demonstrating resilience. Companies have effectively managed macro challenges, with conditions proving better than many analysts initially anticipated. This disconnect between strong earnings and valuation concerns creates uncertainty about sustainable price levels.

The technology sector shows particular strength, with worldwide IT spending projected to reach $5.75 trillion in 2025. This represents a 9.3% increase over 2024, driven primarily by artificial intelligence investments and cloud infrastructure expansion.

Strategic Insights

Multiple structural forces reshape investment landscapes as traditional market dynamics evolve. Central bank policy tightening, persistent inflation concerns, and geopolitical uncertainties create challenging conditions for risk assets across sectors.

The migration from on-premises infrastructure to cloud-based solutions accelerates, particularly among small and medium-sized businesses abandoning legacy systems. This trend benefits major cloud providers while pressuring traditional IT vendors to adapt their business models.

Cybersecurity emerges as a critical investment priority as global cybercrime costs approach $10.5 trillion in 2025. Companies prioritizing security, AI adoption, and streamlined technology spending position themselves advantageously for market fluctuations ahead.

Expert Opinions and Data

BTIG strategists emphasize portfolio diversification and active risk management as essential strategies for navigating anticipated volatility. According to Investing.com, they maintain that while turbulence appears inevitable, disciplined investors can identify opportunities within market disruptions.

The semiconductor industry expects double-digit revenue growth in 2025, propelled by demand for AI accelerator chips and data center communications. This growth extends beyond traditional data centers to PCs, smartphones, and enterprise edge devices as AI integration expands.

Earnings announcements this week provide crucial insights into sector health. Alphabet reports Wednesday after market close, offering visibility into digital advertising, AI development, and cloud sector performance. Tesla’s Wednesday results focus on delivery margins and full-year guidance amid competitive pressures.

Conclusion

Market conditions present a complex environment where strong technological fundamentals meet elevated valuations and technical warning signals. The Nasdaq 100’s historic streak above key moving averages coincides with robust IT spending growth and corporate earnings resilience.

Companies demonstrating agility in AI adoption, cloud migration, and cybersecurity investments maintain competitive advantages as market scrutiny intensifies on profitability and sustainable growth models. The convergence of technical indicators, seasonal factors, and earnings season creates conditions requiring careful navigation and strategic positioning.