Nasdaq 100 Approaches All-time High Despite Deteriorating Consumer Confidence

The Nasdaq 100 (NDX) has spiked higher on Tuesday and is now less than 0.2% from its all-time high of $22,222.61. The technology index’s gains come despite a concerning consumer confidence report from The Conference Board.

The Consumer Confidence Index for June came in at 93.8 compared to the estimate for 99.8 and falling from 98.4 in May. In addition, TCB’s Present Situation Index, which measures current business and labor market conditions through a survey, fell to 129.1 from 135.5. TCB’s Expectations Index, which tracks short-term expectations for income, business, and labor market conditions, dropped to 69.0 from 73.6.

Why is the Nasdaq 100 Rising on Bad News?

The Israel-Iran ceasefire is a driving force behind today’s price action, although the Nasdaq 100 was hardly affected while the war was ongoing. The index’s resilient performance during the past few weeks indicates that investors are confident about the economic outlook and are willing to put their money where their mouth is. That factors into the argument that the Nasdaq 100 is a better gauge of sentiment than any survey or poll because hard-earned money is on the line.

The Nasdaq 100 is up by 1.47% at the time of writing.