Nasdaq Composite Plummets 1.74 as $0.47 Billion Volume Ranks 277th in Market Activity Bearish Momentum and Liquidity Concerns Weigh on Tech-Driven Index

On October 1, 2025, the Nasdaq Composite closed with a 1.74% decline, trading at a volume of $0.47 billion, ranking 277th in market activity. The index faced broad-based pressure amid mixed macroeconomic signals and sector-specific vulnerabilities.

Recent market dynamics highlighted shifting investor sentiment toward technology-driven equities. While extended volatility in growth stocks persisted, defensive sectors showed limited resilience. Analysts noted that earnings revisions for key Nasdaq components remained under scrutiny, with valuation adjustments reflecting tighter liquidity conditions in capital markets.

Technical indicators suggested short-term bearish momentum, with the 50-day moving average acting as a critical support level. Positioning data revealed reduced open interest in Nasdaq futures, signaling potential near-term consolidation. Market participants remain cautious ahead of upcoming policy updates, which could influence capital allocation decisions.

To run this back-test rigorously I need to clarify (and, if necessary, simplify) a few practical details: 1. Universe definition • "All U.S. stocks" can exceed 5,000 names, which is not currently feasible with the available back-test engine. • A common workaround is to limit the universe to a liquid index such as the S&P 500 or the Russell 1000, then rank by each day’s dollar volume within that universe. 2. Portfolio handling • The platform’s strategy engine evaluates one ticker at a time; it does not yet support automatic re-balancing of multi-stock baskets. • A typical solution is to create an equal-weighted "synthetic index" that tracks the combined return of the selected stocks. If you’re comfortable with that approximation, I can build it for you. 3. Trade mechanics • Default: buy at each day’s close, sell at the next day’s close (1-day holding period). • If you’d rather use open prices (open-to-open) or include transaction costs, please specify. Please let me know: • Which universe (S&P 500, Russell 1000, or other)? • Whether the equal-weighted synthetic index approach is acceptable? • Any special assumptions (price type, slippage/commissions)? With those confirmations I can proceed to generate the data-retrieval plan and run the back-test.