Why the Nasdaq-100 Is on a Winning Streak Even as the Iran War Dominates the News

The Iran warfare came arsenic an unwelcome daze to the banal marketplace and the planetary economy. Between Feb. 27 (the time earlier U.S. subject strikes connected Iran began) and March 30, the tech-heavy Nasdaq-100 scale mislaid 8% of its value. With the quality afloat of alarming headlines, investors fled to safe-haven assets and moved distant from tech stocks.

A longer, much destructive Iran warfare would person longer-lasting and much damaging impacts connected the economy. Higher lipid prices would thrust up prices each over, which could origin higher-for-longer inflation.

The request to enactment downward unit connected ostentation mightiness thrust the Federal Reserve to hold further involvement complaint cuts -- oregon perchance to hike the national funds complaint again. More authorities borrowing to wage for the warfare would besides thrust up yields connected longer-term U.S. indebtedness instruments similar the influential 10-year Treasury bond. Higher involvement rates besides thin to beryllium atrocious for banal prices, particularly for maturation stocks.

As of this writing, the Iran warfare has not been declared over. The quality is inactive dominated by updates connected ceasefires, negotiations, and blockades of the Strait of Hormuz, done which overmuch of the planetary proviso of lipid and earthy state travels.

But successful the past fewer weeks, since the large marketplace indexes deed their debased points for the year, it seems that investors are declaring the "all clear" signal. The tech-heavy Nasdaq-100 is up 17.4% since March 30 and has present gained 6.7% twelvemonth to date.

Let's look astatine a fewer reasons wherefore the Nasdaq-100 is connected a winning streak contempt the Iran warfare -- and wherefore tech investors mightiness privation to support buying.

Most U.S. tech companies aren't affected overmuch by Middle East lipid shipments oregon the different disruptions caused by the war. Though Iran has attacked a fewer information centers successful the Middle East, targeting them with drones and missiles, the struggle doesn't airs a nonstop carnal menace to the infrastructure oregon operations of astir ample tech companies.

The Nasdaq-100 rally since March 30 is simply a motion that investors judge the worst of the warfare is over, and that it's harmless to bargain tech stocks again. This is an optimistic awesome that the worst-case scenarios volition beryllium avoided, involvement rates won't spell up, and tech companies tin support delivering beardown net maturation for the remainder of 2026.