Tech stocks are powering stock markets to fresh record highs as easing geopolitical tensions are helping “accelerate the next phase of the AI and tech-led bull market.”
This is the bullish analysis from the CEO of global financial advisory giant deVere Group as Wall Street’s S&P 500 and Nasdaq both closed at new all-time highs on Monday, with the tech-heavy index extending its winning streak to 11 consecutive sessions.
The move comes as expectations build around a potential de-escalation between the US and Iran, after President Trump said a deal to end the conflict is “very close,” while discussions over a second round of negotiations are under consideration.
Nigel Green says: “The reaction in markets is swift and highly targeted. Capital is flowing decisively back into high-growth sectors, with AI and tech companies leading the charge as investors respond to the prospect of reduced geopolitical friction.
“The strength of the rally reflects renewed conviction in the sectors that have been driving market performance in recent years.
“Investors are increasing exposure to AI and tech with intent. As geopolitical tension begins to ease, even marginally, a key layer of uncertainty is removed.”
That, it would appear, is enough to support stronger positioning in sectors where long-term earnings potential remains dominant.
The scale of the Nasdaq’s advance underlines where institutional money is concentrating. Gains are not evenly distributed across the market.
Instead, flows are being directed towards companies most closely aligned with structural growth themes, particularly AI, digital infrastructure, and advanced computing.
This pattern reinforces a central feature of the current market environment: leadership remains firmly rooted in innovation-driven sectors.
“AI and tech continue to set the pace,” Nigel Green explains.
“The easing of geopolitical pressure is acting as an accelerant, allowing investors to commit more capital to the areas already delivering growth. There’s clarity in how money is being deployed.”
A clear divergence between major indices supports this assessment.
“While the Nasdaq has surged, the Dow has edged lower, highlighting a preference for growth-oriented assets over more traditional, economically sensitive sectors.
“The rally is selective and deliberate, reflecting confidence in specific drivers rather than a broad-based rise.”
Markets have also moved quickly to erase losses linked to the Iran conflict. The S&P 500 has now recovered all ground lost since the start of the war, a development that signals how rapidly sentiment can shift as geopolitical expectations evolve.
Nigel Green says this reversal illustrates both confidence in the direction of diplomatic efforts and the underlying demand for exposure to high-growth sectors.
“There is a strong appetite for assets tied to future earnings expansion. As perceived risk declines, discount rates adjust, and that has a direct impact on valuations in the tech sector. Investors are responding to that dynamic.”
Momentum in the Nasdaq also reflects sustained interest in AI as a defining theme.
Investment in data centres, semiconductors, and software platforms continues to expand, supported by both corporate spending and broader economic priorities tied to digital transformation.
Improved geopolitical conditions could further reinforce this trend by supporting supply chain stability and encouraging cross-border investment flows, particularly in areas linked to advanced tech infrastructure.
“AI, and its ecosystem, is central to global economic development, and capital is aligning accordingly,” continues the deVere CEO.
“As uncertainty recedes, there’s greater scope for sustained investment into the companies building and scaling this technology.”
The current rally points to a market that is actively prioritising growth, with tech at the centre of that positioning.
The consistency of gains in the Nasdaq, alongside the speed of the broader market recovery, indicates that investors are acting with a clear strategic focus.
Nigel Green concludes: “Tech leadership is strengthening as conditions improve. The combination of easing geopolitical pressure and continued demand for AI-driven growth is supporting further upside.
“Investors are positioning to capture that trajectory, which could be the acceleration of another intense bull run.”
Yesterday, the CEO went public with his prediction that “Corporate America is heading into this earnings season with serious momentum.”
He noted that the underlying drivers are “a weaker dollar, robust fiscal stimulus, and resilient global demand.”
