Nasdaq 100 Rebounds as Geopolitical Tensions Fuel Risk-On Surge

The Nasdaq 100 reversed a midday decline to close flat after a volatile session driven by escalating tensions between the U.S., Israel, and Iran. The conflict intensified on March 8, 2026, when confirmed airstrikes hit an oil depot in Tehran, resulting in visible fires and destruction. This marked a significant escalation from earlier attacks on February 28, which prompted Iran to launch missile strikes across the region, raising fears of broader energy market disruptions. The geopolitical flare-up triggered a sharp spike in crude oil prices, with CL=F surging 7.3% to $92.60 per barrel amid concerns over potential supply cuts from key Middle East infrastructure. This volatility created a risk-on environment, as investors reallocated capital toward high-growth sectors. The energy and defense industries saw immediate inflows, with defense-related equities posting a 5.2% gain on average. Tech stocks, particularly major Nasdaq 100 components, rebounded strongly. Apple Inc. (AAPL) advanced 2.8%, contributing significantly to the index’s recovery, as traders interpreted the rally as a sign of resilient risk appetite despite ongoing regional instability. The VIX, a key volatility gauge, spiked to 26.4 before retreating to 21.7, indicating that initial panic subsided as markets priced in a contained conflict. Market participants noted that the rapid reversal in sentiment underscored the dominance of risk-on behavior in response to acute supply shocks. The Nasdaq 100’s ability to reclaim ground suggests strong underlying demand for growth assets, even amid geopolitical uncertainty. Investors are now monitoring Iran’s next moves and the trajectory of energy prices closely.