European equity markets and US index futures traded cautiously on Friday, with investors balancing renewed uncertainty in the Middle East against the relentless strength of the global technology sector. While European benchmarks such as the DAX have struggled to maintain upside momentum, the Nasdaq 100 continues to set fresh all-time highs almost daily, underlining the extraordinary appetite for large-cap growth stocks despite Iran uncertainty, valuation concerns and overbought signs.
The Nasdaq 100 futures once again closed at record levels overnight, driven primarily by heavyweight technology names, while Asian markets followed the lead. Japan’s Nikkei and South Korea’s Kospi both advanced sharply, with the latter touching fresh historic highs as chipmakers and electronics firms rallied.
At the same time, falling oil prices have helped calm broader market nerves. Traders increasingly appear to believe that Washington and Tehran will eventually move towards some form of negotiated arrangement, even if diplomatic progress remains uneven and politically fragile. For equity investors, however, the dominant theme remains artificial intelligence and the durability of earnings growth across the technology sector.
Ordinarily, softer energy prices and geopolitical uncertainty would generate concerns over weakening global demand or broader macroeconomic fragility. Yet the current market environment continues to favour risk assets, particularly technology shares, where investors remain firmly focused on long-term AI-related growth opportunities.
AI investment cycle remains the market’s dominant theme
The resilience of the technology rally continues to surprise even seasoned market participants. Valuations across parts of the sector remain historically stretched, but investors are still willing to pay a premium for companies viewed as direct beneficiaries of the AI spending boom.
This week, the technology sector again provided the strongest leadership for global equities. Dell Technologies emerged as one of the standout gainers after the company raised its full-year guidance and reported quarterly results ahead of expectations. Strong demand linked to AI infrastructure and enterprise computing helped reinforce the view that corporate investment in next-generation technology remains exceptionally robust. Dell was among the biggest premarket movers today.
In Asia, South Korean technology firms also attracted strong buying interest. Samsung Electronics supported gains in the Kospi after confirming it had started supplying samples of its latest high-bandwidth memory chips to global clients, reinforcing optimism surrounding AI-driven semiconductor demand.
Meanwhile, LG Electronics announced a fresh expansion into automotive software and smart mobility solutions through a partnership with Google. The development highlights how traditional electronics manufacturers are increasingly repositioning themselves around software, connectivity and AI-enabled products rather than purely hardware-focused business models.
Fragile ceasefire narrative keeps markets on edge
Despite the optimistic tone across equity markets, geopolitical risks have not disappeared entirely. Reports circulated yesterday suggesting that US and Iranian officials had agreed on a provisional 60-day framework designed to extend the current ceasefire and reopen negotiations surrounding Tehran’s nuclear programme.
According to reports citing US and regional officials, the proposal still requires final approval from President Donald Trump. However, sentiment became slightly more cautious later in the session following reports that Iranian forces had launched missiles towards unspecified targets, reminding investors that tensions in the region remain highly unstable.
Even so, market reaction has so far been relatively contained. Investors appear more inclined to view geopolitical flare-ups as temporary disruptions rather than developments capable of derailing the broader bullish trend in equities.
Nasdaq 100 technical outlook remains firmly bullish
From a technical perspective, the Nasdaq 100 remains in a remarkably strong uptrend. Since bottoming towards the end of March, the index has rallied by more than 30%, with buyers consistently stepping back into the market on relatively shallow pullbacks.
The index is also on track to record a second consecutive weekly gain. More notably, over the last eight weeks, the Nasdaq 100 has only posted one negative week — and even that decline was modest at roughly 0.5%.
Momentum indicators continue to suggest overbought conditions, but in strong trending markets those signals can remain stretched for prolonged periods. At present, there is little evidence of a meaningful trend reversal. The broader structure of higher highs and higher lows remains intact, meaning dip-buying strategies are still favoured by many traders.
In terms of key levels, initial support is now seen near the psychologically important 30,000 mark. Below that, 29,675 represents the next significant support zone. The 21-day exponential moving average is currently approaching the 29,000 area, while the late-May swing low near 28,570 remains the broader downside reference point for bullish traders.
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