Nasdaq Extends Rally to 10 Days as Markets Move Green on Year – The Movers

The Nasdaq Composite pushed back into positive territory for 2026 today, rising 1.26% through the first couple of hours, to extend its winning streak to ten consecutive sessions, as markets rotated decisively back into growth and technology names on renewed optimism that the Iran-US conflict may be contained.

The Nasdaq moved green year-to-date, up 1% on the period, and marking a remarkable reversal from the sharp losses sustained during the initial phases of the Iran conflict. The index now trades above levels seen before hostilities escalated, signalling that markets are pricing the geopolitical shock as painful but ultimately manageable rather than systemic.

Leading the charge were high-beta growth names that had been severely punished in recent months.

From the Nasdaq 100, Strategy surged 6.54% to $141.01, recovering from deeply negative three-month and six-month returns of -18.1% and -57.7% respectively. Axon Enterprise jumped 5.07% to $377.85, though the stock remains down more than 44% over three months and 50% over six months. Meta Platforms added 3.46% to reach $656.50, extending its one-year gain to 15.6%, while Tesla climbed 2.98% to $362.94, bringing its twelve-month return to nearly 37%.

Amazon advanced 2.80% to $246.60, and Palantir Technologies gained 2.89% to $136.20, with the latter posting a robust 47.4% one-year return despite recent volatility.

Speculative segments of the market showed even more dramatic moves.

Quantum computing stocks IonQ, D-Wave Quantum, and Rigetti Computing surged 18.1%, 15.4%, and 12% respectively, while small modular nuclear reactor plays NuScale Power and Oklo rebounded 8.3% and 6.7%, underscoring a wholesale return of risk appetite.

Rotation Away from Defensives and Energy

The rally’s breadth revealed a clear tactical shift. Defensive consumer staples and earlier war beneficiaries lagged sharply. Kraft Heinz declined 1.63% to $22.06, while industrial distributor Fastenal fell 2.21% to $44.79 despite solid longer-term performance.

Most notably, energy names that had surged during the height of the conflict retreated. Diamondback Energy dropped 2.25% to $184.85 even as it maintains a 44% one-year gain, and industrial gases giant Linde slipped 2.45% to $496.39. Intel, despite spectacular three-month and one-year returns of 35.5% and 212.7%, gave back 2.86% to $63.32 as semiconductor strength consolidated. Charter Communications fell 3.32% to $218.79, extending its one-year decline to 33%.

The divergence between surging growth stocks and retreating defensives and energy names points to markets pricing in easing oil pressures and reduced tail-risk scenarios as temporary ceasefire arrangements and signals of potential renewed US-Iran diplomatic talks have emerged.

Macro Backdrop: Oil Retreat and Ceasefire Hopes

The ten-day Nasdaq rally has coincided with a meaningful pullback in crude oil prices from panic-driven highs reached during the most intense phase of the Iran conflict. Brent crude has retreated from levels well above $100 per barrel, easing immediate fears of a sustained stagflationary shock that would force the Federal Reserve to maintain or even tighten monetary policy despite weakening growth signals.

Reports of a temporary ceasefire and subsequent indications that both Washington and Tehran may be willing to return to negotiations have provided the catalyst for the relief rally. Markets are holding out hope that energy flows through the Strait of Hormuz and broader Middle Eastern shipping lanes can normalize, reducing the inflationary impulse from supply disruptions.

However, the conflict remains unresolved. Blockade dynamics and the risk of renewed escalation continue to pose threats to supply chains and energy markets. Consumer sentiment data released in recent weeks has shown Americans remain deeply concerned about inflation and economic stability, with much of the anxiety attributed to war-related price pressures.

Fed Policy Uncertainty

Federal Reserve officials have offered mixed signals in recent weeks. While some policymakers have indicated potential for further rate hikes if inflation remains elevated above target, others have noted that conflict-driven economic damage could eventually necessitate rate cuts to support growth. This uncertainty has created a challenging backdrop for equity valuations, particularly for long-duration growth stocks whose cashflows are most sensitive to discount rate assumptions.

March consumer price index data showed inflation pressures persisting, though the degree to which energy and supply-chain disruptions are driving the numbers versus underlying demand remains a subject of debate among economists and central bankers.

Speculative Fervour Returns

The sharp outperformance of highly speculative segments such as quantum computing and early-stage nuclear energy offers a revealing window into market psychology. These are long-duration, unproven technology bets that typically attract capital only when macro panic is fading and risk appetite is expanding.

The quantum computing rally, spanning multiple small-cap names with limited near-term revenue visibility, suggests traders are once again willing to chase momentum and embrace companies with transformative but distant potential. Similarly, the rebound in small modular reactor stocks reflects renewed interest in structural energy security and decarbonization themes, even as traditional oil and gas producers take profits.

This pattern of leadership, with mega-cap technology giants rising alongside highly speculative micro-caps, is characteristic of markets that believe the worst-case scenario has been avoided but remain uncertain about the durability of the recovery.

The coming weeks will test whether the recent optimism can translate into sustained gains or whether markets have once again gotten ahead of themselves, pricing in a best-case resolution to conflicts and policy challenges that remain very much in flux. Earnings season is about to really motor, and there will be plenty of fundamental data to pick through.