Tech-Led Rally Propels Nasdaq 100 on Geopolitical Shift

A surprising shift in U.S. foreign policy ignited a powerful rebound for the Nasdaq 100 on Tuesday, with the index surging more than 1.8%. The rally was triggered by President Trump's decision to suspend planned tariffs against NATO allies and to abandon military considerations regarding Greenland. This announcement spurred a pronounced "risk-on" sentiment across Wall Street.

Closing near the 25,500-point threshold, the index successfully recouped losses from preceding sessions. Technology and semiconductor shares were particularly sought-after, leading the charge. Market volatility receded noticeably, with the VIX index declining over five percent to settle at 19.06 points.

The most significant momentum originated from the chipmaking sector. Intel shares soared nearly twelve percent, buoyed by optimistic analyst commentary ahead of its quarterly earnings report scheduled for January 22. Advanced Micro Devices (AMD) gained 7.5%, while Nvidia added approximately three percent. The latter's rise followed CEO Jensen Huang's announcement of plans to travel to China to explore new chip market opportunities.

IBM also posted a strong performance, advancing 4.7% to $291.40. JPMorgan had raised its price target for the company, citing robust progress in its software business segment.

Should investors sell immediately? Or is it worth buying NASDAQ 100?

On the downside, Netflix shares declined by as much as four percent. Despite reporting quarterly results that exceeded expectations, the streaming service disappointed investors with its subscriber growth figures, sending its stock to a 52-week low. Kraft Heinz dropped roughly 5.5% after news emerged that Berkshire Hathaway intends to divest a substantial portion of its stake in the company.

Technical Picture Shows Notable Improvement

From a chart analysis perspective, the Nasdaq 100 formed a bullish reversal pattern. The index successfully defended a crucial support level at its 100-day moving average, situated around 25,000 points. The next technical target now resides near the yearly high, just below 26,000 points.

Trading volume was substantially elevated, especially within the semiconductor industry. The options market displayed unusually high activity for Intel, with volume reaching six times its daily average. The call-put ratio for the stock stood at 2.5 to 1, indicating strong bullish sentiment.

The yield on the 10-year U.S. Treasury note held steady at 4.26%, providing a stable backdrop for growth-oriented equities. Analysts note, however, that a rise above the 4.30% level could reintroduce market volatility. Intel's upcoming earnings release is widely anticipated to provide critical direction for the index's near-term trajectory.