TLDR:
- Nasdaq and Russell 2000 have fully recovered losses from the March selloff, rising nearly 9% from recent lows.
- Strong liquidity conditions and rising global M2 supply continue to support equity market resilience and recovery.
- ISM data holding above 52 for three months signals steady economic activity backing market strength.
- Large-cap stocks lead the recovery while small caps follow, reflecting improving but cautious risk appetite.
U.S. equities have staged a swift recovery, with major indices erasing losses linked to recent geopolitical tensions. Market data shows both large-cap and small-cap benchmarks rebounding sharply, supported by strong liquidity conditions and steady macroeconomic signals.
Nasdaq Leads Recovery as Large Caps Approach Record Levels
A recent post by Bull Theory noted that both the Nasdaq 100 and Russell 2000 have fully recovered from declines tied to the US-Iran conflict. The Nasdaq 100, in particular, has climbed back near its all-time highs after a sharp March 2026 drop.
Weekly data shows the Nasdaq opened at 24,143 and closed at 25,116, after reaching a high of 25,226. The index had fallen toward the 23,000 level during the geopolitical selloff. However, buyers returned quickly, pushing prices back above key support at 24,000.
The broader trend remains upward, with the index rising from around 16,500 to near 26,000 before the correction.
Earlier disruptions, including tariff-related concerns in 2025, did not slow the longer-term move. Instead, price action shows consistent recovery patterns after each macro-driven decline.
Current levels place the Nasdaq close to resistance between 25,500 and 26,000. Market behavior suggests continued strength, with multiple bullish weekly candles forming after the March low. This pattern reflects sustained demand, particularly in large-cap technology stocks.
At the same time, the speed of the rebound indicates that market participants are responding more to liquidity conditions than short-term geopolitical risks. The absence of extended consolidation also points to strong underlying momentum.
Russell 2000 Follows With Steady Gains as Risk Appetite Builds
The Russell 2000 has also recovered, though it remains slightly below its previous highs. According to the Bull Theory update, the index is up roughly 9% from its March bottom, mirroring the Nasdaq’s recovery pace.
Weekly figures show the Russell opened at 2,527 and closed at 2,630, with a high of 2,646. During the March decline, it dropped toward the 2,400–2,450 range. That move marked an approximate 11% pullback before buyers stepped in.
The index has since reclaimed the 2,600 level, supported by a series of strong weekly gains. Still, it trails the Nasdaq in reaching its peak, with resistance seen between 2,650 and 2,700. This slower recovery aligns with typical market behavior, where large caps often lead before smaller stocks catch up.
Earlier tariff-related volatility in 2025 also triggered a sharp dip near 1,800, followed by a rapid rebound. That pattern has repeated, reinforcing the view that recent declines were driven by external shocks rather than internal weakness.
Across both indices, synchronized movements suggest a shared macro influence rather than isolated sector stress. The quick recovery from the March selloff reflects stable demand conditions and continued capital flow into equities.
Supporting data adds context to the rebound. Global M2 money supply has reached record levels, while ISM readings have stayed above 52 for three straight months. Inflation trends also remain contained, near multi-year lows.
As markets approach resistance zones, price action around these levels will guide the next phase. A sustained move above recent highs could extend the rally, while rejection may lead to a consolidation range.
The post Markets Roar Back as Nasdaq and Russell 2000 Wipe Out War Losses in Powerful Rally appeared first on Blockonomi.
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