Nasdaq and S&P 500 climb despite shock from Iran crisis — here’s what’s driving today’s market gains

The Nasdaq Composite rebounded sharply on the session, rising 80.79 points to close at 22,749.00, up 0.36%, after plunging as much as 1.6% earlier in the day. The early selloff was triggered by escalating Middle East tensions following U.S.–Israel strikes on Iran, which initially rattled global markets. However, investors quickly shifted sentiment and aggressively bought the dip in major technology stocks.

Heavy buying in NVIDIA Corporation, which surged more than 3% to 182.78, and Microsoft Corporation helped power the tech-heavy index back into positive territory. Fund managers stepped in after the sharp morning drop, while algorithmic trading models flashed buy signals as the Nasdaq approached oversold conditions.

The broader market showed mixed performance. The S&P 500 remained near flat at 6,878.04 after recovering from a 1.2% intraday decline. The Dow Jones Industrial Average slipped 79 points to 48,898.10 as investors rotated away from industrial and travel-related stocks. Airline shares faced pressure on concerns over rising fuel costs, while energy and defense names attracted buyers. Exxon Mobil Corporation gained amid oil price volatility, and Lockheed Martin advanced as traders priced in potential increases in defense spending.

Market volatility spiked early in the session, with the CBOE Volatility Index climbing to its highest level of 2026 as investors hedged risk exposure. Safe-haven assets also reacted strongly — gold futures jumped nearly 1%, briefly touching $5,400 per ounce before easing.

Meanwhile, crypto markets added to the rebound in risk appetite. Bitcoin surged more than 5% to 69,503, while Ether climbed over 6%. The rally in digital assets supported broader growth sentiment and reinforced buying in high-beta technology stocks.

In short, today’s Nasdaq recovery was driven by dip-buying in mega-cap AI leaders, resilient crypto momentum, and a market assessment that the geopolitical shock did not warrant a prolonged equity selloff. Traders are now closely watching oil prices and the upcoming U.S. jobs report for direction on the next major move.