The index erased a 330-point gain after reports suggested a swift resolution to the Israel-Lebanon conflict is unlikely.
The NASDAQ erased all early gains, dropping 71 points from session highs to trade near unchanged, as geopolitical risks resurfaced. The index had rallied as much as 330 points to 26,259.92 before reversing course amid reports of stalled cease-fire talks in the Middle East.
The reversal pushed the NASDAQ back below its 200-hour moving average at 26,120.40, a key technical level that had been breached earlier in the session. The index briefly traded above this threshold yesterday but failed to sustain momentum, reinforcing its significance as a near-term resistance point.
Market sentiment shifted lower after a Pakistani source indicated ongoing cease-fire violations by Israel in southern Lebanon would likely delay any agreement. The news triggered a pullback in equities, with the NASDAQ leading the decline.