Tech Giants Propel US Indices Higher Amid Geopolitical Tension

US equity markets extended their winning streak on Tuesday, with the Nasdaq-100 leading gains at 1.6%, followed by the S&P 500 rising 1.1% and the Dow Jones Industrial Average increasing 0.6%. The rally was primarily driven by the 'Magnificent 7' group, which holds a significant 65% weight in the Nasdaq-100. Investors leaned into technology strength as a hedge against a complex macroeconomic backdrop characterized by recession warnings and geopolitical instability. Alphabet, Nvidia, and Amazon were the primary catalysts, with Amazon gaining 3.73% and Alphabet rising over 3%. In the financial sector, Goldman Sachs saw a 2% increase following first-quarter results that exceeded Wall Street's consensus for both earnings and revenue. This provided a boost to the Dow, where Goldman carries a substantial 11.4% index weight. Adding to the bullish momentum, Amazon announced the acquisition of satellite communications veteran Globalstar, which saw its own shares jump 9.36%. This corporate move contributed to a broader positive sentiment across the tech sector. Despite the gains, systemic risks remain elevated. Wholesale inflation has reached a three-year peak, and the US blockade of the Strait of Hormuz continues to pressure oil prices. While the S&P 500 has recovered to levels seen before the current Iranian conflict, indices are now approaching technical resistance levels where previous rallies have historically stalled.