Peace Talks Lift Tech Stocks as Treasury Yields Rise on Fading Safe-Haven Demand

The Nasdaq 100 closed up 1.40%, driven by rebounding tech valuations in a lower-geopolitical-risk environment. The US and Iran reached an in-principle agreement to extend their ceasefire by two weeks to allow further diplomacy. Geopolitical risk eased, reducing demand for safe-haven assets like US Treasury notes. The 10-year T-note yield rose by 2.8 basis points to 4.276% as prices fell by 5.5 ticks. Rising yields reflect diminished flight-to-safety demand and reinforce expectations of prolonged Fed inaction. Higher Treasury yields increased the opportunity cost of holding non-yielding assets, benefiting equity sectors sensitive to interest rate expectations. Optimism from the ceasefire boosted investor confidence, pushing the S&P 500 and Nasdaq 100 to record highs. Technology and software stocks led gains, with Atlassian up over 10%, Datadog up over 9%, and Microsoft up over 4%.