The Nasdaq led a market recovery today, in the face of ongoing geopolitical volatility and market uncertainties stemming from the Middle East conflict. The rally, marked by a 1.5% increase, was influenced by factors such as month-end flows and dip buying, which were prompted by softer Eurozone inflation.
The reluctance of the US to support a broader conflict potentially involving Iran, and concerning comments from Turkey, continue to add to market uncertainties. Despite this, a sense of market relief has been noticeable.
Among the significant contributors to Nasdaq's rally were Meta (NASDAQ:META), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), collectively known as part of the "Magnificent 7". Meta's move towards ad-free subscriptions led to a 3.4% increase in its shares. Amazon also saw a sustained rally of 3.4%, while Microsoft observed a 2.7% rise.
However, the sustainability of this rally remains uncertain. It may require backing from entities such as the Federal Reserve or the bond market to maintain its momentum.
In the context of Israel's ground offensive not opening a second front, the market has shown resilience. This resilience is particularly evident in Nasdaq's performance, which is staging a recovery despite these ongoing challenges.
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