S&P 500 rises 1%, Nasdaq 100 gains 1.1%.

S&P 500 rises 1%, Nasdaq 100 gains 1.1%.

The S&P 500 index rose by 1% on Monday, June 19, 2025, while the Nasdaq 100 gained 1.1%. These gains come amidst ongoing geopolitical tensions, including the escalation of the Iran-Israel conflict and the potential impact on global markets.

The escalation of the conflict, led by President Donald Trump's decision to join Israel's military campaign against Iran, has been a significant factor affecting the US stock market. According to Mark Malek, Chief Investment Officer at Siebert Financial, NYC, the immediate reaction of the stock market to this development is expected to be positive [1]. He stated, "I believe that on Friday if you’d asked me, I would have expected two weeks of volatility with markets trying to analyze every drib and drab of information coming out of the White House and I would have said that it would have been better to make a decision last week. So this will be reassuring, especially since it seems like a one and done situation and not as if (the US) is seeking a long, drawn out conflict."

Rong Ren Goh, Portfolio Manager at Eastspring Investments, Singapore, echoed similar sentiments, noting that the prospects of a swift resolution have diminished, but investors are likely to reprice risk across markets [1].

The mixed finish on Friday, with the S&P 500 falling 0.2% to close out a second straight week of modest losses, the Dow Jones Industrial Average adding 0.1%, and the Nasdaq composite falling 0.5%, reflects the ongoing uncertainty in the market [1]. However, the positive outlook from stock market experts suggests that investors are cautiously optimistic about the situation.

The Nasdaq 100, which includes some of the biggest success stories in tech and growth investing, has seen mixed performances among its constituent stocks. For example, Cisco (CSCO) and CoStar (CSGP) are facing challenges such as end-market challenges, waning returns on capital, and increased capital intensity, respectively [2]. In contrast, The Trade Desk (TTD) has shown strong billings growth, a user-friendly software platform, and a highly efficient business model, making it a top pick for investors [2].

Broadcom (AVGO), a key player in the AI infrastructure sector, has delivered record revenue and is expected to continue its growth trajectory. The company's AI semiconductor revenue surged 46% to $4.4 billion in fiscal Q2, with management forecasting AI revenue to reach $60-90 billion by fiscal 2027 [3]. This growth is driven by accelerating inference demand and XPU deployments, positioning AVGO as a leading enabler of the artificial intelligence revolution.

In conclusion, while global tensions continue to influence market dynamics, the S&P 500 and Nasdaq 100 indices have shown resilience, with the former rising by 1% and the latter gaining 1.1%. Investors remain cautious but optimistic, with a focus on companies like The Trade Desk and Broadcom that are well-positioned to capitalize on growth opportunities in the tech and AI sectors.

References:

[1] https://economictimes.indiatimes.com/news/international/us/us-stock-market-outlook-will-sp-500-dow-jones-nasdaq-crash-or-rise-amidst-iran-israel-war/articleshow/122006577.cms?from=mdr

[2] https://markets.financialcontent.com/stocks/article/stockstory-2025-6-23-1-nasdaq-100-stock-to-target-this-week-and-2-to-steer-clear-of

[3] https://www.tikr.com/blog/3-reasons-why-broadcom-nasdaq-avgo-stock-could-continue-to-outperform-in-the-next-3-years