LIVE MARKETS-Nasdaq shrugs off correction fears, breadth joins the rebound

Just a week ago, the Nasdaq Composite .IXIC was on the verge of a correction. Last Wednesday, the tech-heavy index closed down 9.78% from its June 2 record close, narrowly avoiding the 10% decline that typically defines correction territory. Since then, the picture has changed dramatically.

The Nasdaq has rallied 8.8% over the last four trading sessions, its strongest four-day gain since April 2025. By Tuesday's close at 26,584.99, the index had trimmed its deficit from that record close to just 1.9%. It's also only 2.2% below its June 1 intraday peak.

Big tech and semiconductor stocks are once again leading the charge. The Magnificent Seven ETF MAGS.K has gained more than 10% over the past four sessions, marking its best four-session run since April 2025. Chip stocks have been even stronger, with the PHLX Semiconductor Index .SOX soaring nearly 17%, its biggest four-day advance since March 2020.

Ahead of Wednesday's open, E-mini Nasdaq 100 futures NQcv1 are up about 0.2%, pointing to a slightly higher start for the cash index.

Market breadth is improving as well.

The Nasdaq New High/New Low (NH/NL) Index, a closely watched gauge of internal market strength, sank last week into a zone that coincided with several pullback lows in late 2025. Since then, it has staged a sharp V-shaped recovery.

The indicator ended Friday at 32%, within the 29.7%-35.0% range where previous declines found support. It climbed back above its 10-day moving average on Monday and rose to nearly 40% at Tuesday's close. The move suggests participation is improving and strengthens the case that the Nasdaq's recent pullback may already be over.

For bulls, the next test is whether breadth can continue to improve. The NH/NL Index put in a high at 59.3% in early July. A break above that level would open the door to a move toward the 77%-83% zone that marked the indicator's highs in 2025 and 2026.