The Prime Daily: 25 August 2026

Authored By Prime Research | Published at: Aug 25, 2026 09:28 AM IST

Open Free Demat Account

Tech Selloff Drags Nasdaq Lower

Major US technology and semiconductor shares fell sharply yesterday, weighing on both the Nasdaq and the S&P 500. Investors reduced exposure to high-growth tech firms ahead of upcoming quarterly corporate reports and fresh inflation data, opting to rotate capital into more defensive asset classes.

The S&P 500 fell 0.28%, and the Nasdaq dropped 0.76% as semiconductor stocks sold off, with Micron down nearly 6% and Nvidia slipping below $210 ahead of its earnings report on Wednesday.

The Dow Jones moved counter to the broader market, closing higher amid strong performance from defensive blue-chip corporations and major financial institutions. Gains in banking stocks and healthcare providers successfully offset the downside pressure stemming from the technology sector.

Space stocks like SpaceX (-3%) and AST SpaceMobile (-3%) fell despite a bullish 1,000-launch policy memo from Trump. The moves suggest investors are pricing in execution risk after a stretch of speculative gains.

Treasury Secretary Bessent unveiled a sweeping ‘economic asphyxiation’ sanctions campaign against Iran, warning a major financial institution will be sanctioned within days. The news drove safe-haven demand for the dollar and gold while pressuring risk assets like tech stocks.

The Dollar Index reclaimed the 99 level for the first time since last Wednesday’s plunge, driven by risk-off demand tied to the escalation of sanctions on Iran.

Gold settled higher near $4,640 per ounce, continuing its bullish trend amid an uneasy U.S. fiscal outlook and rising inflation expectations.

Government bond yields came under downward pressure following reports that the U.S. Treasury may utilise its near-$1 trillion General Account to fund upcoming buyback operations. This manoeuvre provided minor relief to fixed-income markets, which have been troubled by escalating corporate debt issuance and persistent government deficit worries.

After a two-session pullback, the Nifty resumed its downward trajectory yesterday, shedding 33 points to settle at 24,219. A modest recovery in the final hour helped the index close well off the lows, with a 35-point surge during the closing auction session (CAS) cushioning the overall drop.

In the currency market, the domestic rupee experienced a sharp intraday reversal. Robust FCNR(B) inflows drove a strong opening, but a concurrent sell-off in domestic equities and a strengthening US dollar wiped out early gains. The currency eventually settled 6 paise lower at 95.7.

The Nifty slipped below its 20 DEMA, placed at 24,292, indicating continued short-term weakness. The upward-sloping trendline support around 24,050 also remains intact, keeping the possibility of a meaningful recovery alive.

Markets are bracing for their first monthly derivatives expiry using CAS, a crucial test for a mechanism that has witnessed sharp swings in the closing session.

The index continues to oscillate within the 24,000–24,400 band. A decisive breakout from this range could dictate the next directional move, whereas range-bound conditions may continue to favour stock-specific opportunities.

Indian equities are set for a subdued start due to a lack of strong cues.

Disclaimer

At HDFC SKY*, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations
HDFC SKY from HDFC Securities, one of most trusted trading platforms in India, has been recognized with the *Next-Gen Digi Content Awards 2025–26.

Markets