The NASDAQ 100 index is displaying a rare sight – a bull run that shows no signs of slowing down.
NASDAQ 100 Index Nears Historic Peak on June 25, 2025
In today’s market, the NASDAQ 100 index is approaching its all-time high, and investors are becoming increasingly optimistic about the prospects of the global economy.
NASDAQ 100 Index Shows No Signs of Fatigue
Less than a percentage point shy of its all-time high, the NASDAQ 100 index has been steadily rising over the past few months. The impressive run has been fueled by a mix of factors, including the continued growth of the technology sector, easing interest rates, and the ongoing shift towards a more accommodative monetary policy.
One of the key drivers behind the NASDAQ 100’s success has been the dominance of the FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google. These five tech giants have been consistently outperforming the broader market, with their market capitalization collectively surpassing the GDP of many countries.
Iran Ceasefire and the Impact on Risk Sentiment
In recent weeks, the fragile peace agreement in the Middle East has had a profound impact on risk sentiment. The ceasefire between Israel and Hamas has brought a sense of stability to the region, which has in turn boosted investor confidence.
The ceasefire has also had a positive impact on the macroeconomic landscape, with the ceasefire agreement expected to boost economic growth and reduce the risk of future conflicts. As a result, investors are becoming increasingly optimistic about the region’s economic prospects, which is likely to have a positive impact on the broader market.
Powell Testifies and the Market Reacts
Yesterday, Federal Reserve Chairman Jerome Powell testified before Congress, in which he expressed his willingness to wait for the optimal moment to implement further rate cuts. Powell’s comments were seen as dovish by many market participants, who interpreted the statement as a sign that the Fed is prepared to wait for the economic data to improve before taking any further action.
The market reacted positively to Powell’s comments, with the US dollar falling against major currencies and yields falling across the bond curve. The shift in market expectations has led to a reduction in the likelihood of further rate cuts, which is likely to have a positive impact on the equities market.
Australian Inflation Declines to 3.5-Year Low
In a surprise move, the Australian Bureau of Statistics (ABS) reported that inflation had declined to a 3.5-year low. The sharp decrease in inflation was driven by falling energy prices and a decline in the prices of goods and services. The improved inflation data has led to a reduction in market expectations of further interest rate hikes in Australia, which is likely to have a positive impact on the local currency.
The decline in inflation is also a reflection of the structural changes affecting the global economy. With the ongoing shift towards a more services-based economy, many countries are experiencing deflationary pressures. The improved inflation data in Australia is a welcome development for the RBA, which has been trying to achieve a delicate balance between achieving low inflation and supporting economic growth.
Bank of Japan Hints at More Aggressive Tightening
In a surprise move, the Bank of Japan (BOJ) hinted at the possibility of implementing more aggressive monetary policy tightening measures. The BOJ’s comments were seen as dovish by many market participants, who interpreted the statement as a sign that the central bank is prepared to act quickly to address rising inflation pressures.
The BOJ’s comments have led to a sharp increase in Japanese bond yields, with the yield on the 10-year government bond rising by over 20 basis points. The increase in yields has also had a positive impact on the Japanese currency, which has strengthened by over 1% against the US dollar.
