New York, June 24 EST: The Nasdaq 100 ended Tuesday at a new all-time high of 22,190.52, its first since mid-February. The index rose 1.5%, lifted by a mix of geopolitical relief and growing conviction that the Federal Reserve may be closer to cutting rates than previously thought.
That’s not a rally built on hype—it’s a reaction to risk coming off the table.
A Turn in the Narrative
What changed? Two things that matter.
First, the Israel-Iran ceasefire pulled global markets out of a defensive crouch. Headlines that, weeks ago, could have triggered another round of flight to safety now signaled a path toward relative calm. That gave institutional money room to rotate back into tech—especially the longer-duration, growth-heavy names that suffer when volatility spikes.
Second, Jerome Powell’s tone last week wasn’t hawkish. If anything, it left the door open. While the Fed Chair stopped short of promising cuts, language from board members like Waller and Bowman made it clear: the bar for easing is no longer out of reach.
Treasury yields edged lower. The dollar weakened. And the Nasdaq caught a bid.
Tech Stocks Lead the Way—Again
This isn’t just a passive ETF melt-up. Micron, Palantir, and Microchip Technology were among the stocks seeing real, conviction-driven buying. These are names that cratered during April’s drawdown, when tariffs and rate fears pulled the index down over 23%.
Their rebound now suggests not just a technical recovery, but a rotation back into names with actual revenue upside—especially if rate policy loosens.
It’s worth noting: even in a post-AI-hype moment, the semis are still the bellwether. They’re telling you what investors really believe about the second half of the year.
What’s Priced In—And What Isn’t
The Nasdaq’s new high comes with context. The last time it hit this level—Feb. 19, 2025—markets were bracing for another Fed hike and pricing in prolonged geopolitical risk. That’s now shifted.
But it’s not all clear skies. The market is betting on a soft landing and at least one cut in 2025. If inflation surprises, or if the Fed decides to push back harder, this run has room to unwind.
Still, Tuesday’s close tells a clear story: risk appetite is back. And for now, the Nasdaq is where it’s showing up.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
