The Nasdaq is struggling a bit today.

Tech stocks are collectively pulling back, and the index closed slightly lower—the direct cause is the US Treasury yields climbing again. The Fed's policy signals remain unclear, so the market is in a wait-and-see mode. As financing costs rise, high-valuation growth companies are under pressure, and many hot stocks experienced significant intraday swings, giving back a good portion of their recent gains.

More importantly, there’s been a shift in capital flows. A lot of money is starting to move out of tech and growth stocks and into relatively stable sectors like value and cyclical stocks—a classic risk-off move. Once this kind of structural adjustment starts, it becomes much harder for the index to stabilize in the short term.

However, some analysts believe this is just a short-term fluctuation. After all, inflation and interest rate expectations will become clearer sooner or later, and a batch of tech companies are about to release earnings reports. If the numbers are impressive, market sentiment could recover quickly, and there might still be room for a rebound before year-end. That said, volatility is high right now, so position management and diversification are still important.

If you want to keep an eye on the Nasdaq, I suggest focusing on a few key signals: how the bond market is moving, any new changes in interest rate expectations, whether tech sector valuations remain sustainable, and the upcoming corporate earnings—all of which will directly impact the market in the coming weeks.