Geopolitical Shockwaves Propel Nasdaq 100 at Start of 2026

NASDAQ 100 US6311011026

The Nasdaq 100 opened the first full trading week of 2026 on a positive note, buoyed by an unexpected geopolitical event. A sharp, sector-specific rotation, triggered by news surrounding Venezuela, provided the initial momentum. While strength in shares of Tesla and Amazon served as primary supports for the index, a notable decline in heavyweight Apple acted as a significant counterweight.

Market movements on Monday were characterized by a classic "geopolitical trade" shift. The catalyst was the weekend detention of Venezuelan President Nicolás Maduro by U.S. military forces. This development prompted an immediate surge in oil prices, lifting energy sector equities such as Baker Hughes. Defense-related names, including Axon Enterprise, also recorded gains as investors anticipated potential increases in security expenditures. This influx of capital into commodity and defense stocks helped the broader market offset concurrent softness in the semiconductor segment.

A Divergence Among Market Leaders

The influential cohort of mega-cap technology stocks presented a mixed picture. Tesla emerged as a clear leader, posting substantial gains. The advance was bolstered by favorable analyst commentary and a recovery in overall market sentiment following recent volatility. Amazon also proved to be a crucial pillar for the index, shrugging off recent legal headlines and capitalizing on a renewed appetite for risk among investors.

In contrast, Apple shares faced pronounced pressure. Reports of weakening demand and potential supply chain bottlenecks in Asia circulated, leading to a sell-off that weighed materially on the technology-heavy gauge. Meanwhile, the artificial intelligence favorite Nvidia failed to escape the sector rotation trend, consolidating its recent advances with a minor loss. Microsoft's shares ended the session largely unchanged.

Technical Perspective

The index managed to reclaim a key level, closing at 25,401 points. Bullish participants successfully defended support zones around 25,350 points, establishing a higher intraday low in the process. On the upside, the session's peak near 25,520 points now represents the most immediate resistance. A decisive break above this barrier could pave the way for a test of the highs recorded in December.

Market Outlook

Attention on Tuesday remains fixed on the ongoing geopolitical reverberations and their sustained impact on energy markets. The durability of the current market move will likely depend on whether bellwether stocks like Amazon and Tesla can maintain their upward momentum. Furthermore, investors are awaiting the forthcoming release of the ISM Services Purchasing Managers' Index later in the week. This data will serve as the next significant economic indicator, offering fresh insight into the underlying strength of the economy.