Nasdaq 100 nears all-time high on trade optimism and strong earnings

The Nasdaq 100 is close to hitting a new record high, bouncing back impressively after dropping 23% from its last peak. This surge is fueled by positive company earnings and reduced global tensions, making tech-heavy stocks more attractive to investors. Companies like Microchip Technology, Micron Technology, and Palantir Technologies are leading the charge, showing strong growth and boosting the index.

A recent ceasefire between Iran and Israel has calmed markets, causing oil prices to drop significantly—Brent crude fell over 9% in just one day. This has eased worries about inflation, giving stocks room to climb. The tech sector is also riding high on advancements in artificial intelligence and solid financial results. For example, Tesla’s stock jumped 9.7% after launching its self-driving taxi in Austin, highlighting the industry’s innovation.

However, there are concerns. Tech stocks have high price-to-earnings ratios, meaning they need to keep growing fast to justify their prices. Some analysts are less optimistic, pointing to possible challenges ahead, like upcoming U.S. tariff deadlines and ongoing Middle East tensions.

Still, the Federal Reserve’s hints at interest rate cuts in 2025 are adding to the positive mood. The Nasdaq 100 is now near 21,720, up 32% from its April lows, but it faces resistance around 22,000—a level it has struggled to break through before. Investors are watching closely as earnings season and global events could shape what happens next.