Geopolitical De-escalation and AI Strength Drive Nasdaq to Record Highs

Global markets are reacting positively to a significant reduction in Middle Eastern tensions, as the Strait of Hormuz has been declared "completely open." The announcement, confirmed by both Iranian officials and U.S. President Trump, coincides with a ceasefire between Israel and Lebanon that is currently set to expire on April 26. This development is viewed as a critical step toward a potential near-term peace deal. This geopolitical thaw has had an immediate and profound impact on energy markets. U.S. oil prices have plummeted to $85 per barrel, marking a steep decline from the $115 levels seen just ten days prior. While betting markets currently place the odds of a formal peace deal by April 30 at 50%, the prevailing sentiment remains cautiously optimistic. On the corporate front, the first-quarter earnings season has commenced with strong momentum. Major banking institutions reported that consumers have remained resilient in the face of previous energy price spikes. More critically, semiconductor giants TSMC and ASML both exceeded earnings expectations and raised their annual revenue guidance, citing "extremely robust" demand for artificial intelligence technologies. The combination of lower energy costs and tech strength has pushed the Nasdaq-100 to record highs for three consecutive sessions. The index has gained 6% this week and stands at 6% year-to-date after 13 straight sessions of growth. In the fixed-income market, 10-year Treasury yields have retreated by more than 5 basis points to 4.25%.