Yesterday, equity indices closed mixed. The S&P 500 rose by 0.12%, while the Nasdaq 100 jumped by 0.20%. The Dow Jones Industrial Average fell by 0.13%.

The MSCI Asia Pacific index was virtually unchanged on Tuesday, remaining at levels seen in late February, when the US and Israel's war against Iran began. Technology stocks outperformed the market: South Korean equities jumped by about 1% and overtook British stocks to become the eighth-largest equity market in the world.

However, selling pressure returned to the equity market after US President Donald Trump voiced his displeasure with Iran's latest proposal to resolve the conflict. That comment, coming amid an already tense geopolitical backdrop, sparked investor concern about a potential re-escalation in the Middle East. As you know, financial markets react quickly to any signals that could upset the fragile balance of global stability. In this case, the US president's rejection of what was presented as a de-escalation proposal calls the prospects for a peaceful resolution into question, which in turn raises the risk of renewed military action and weighs on investor sentiment.

So, ahead of the Federal Reserve's policy decision on Wednesday and amid geopolitical uncertainty, investors are locking in profits and shifting focus to tech-giant earnings. The reports from major companies will test whether the recent equity advance can be sustained.

According to Allspring Global Investments, despite ongoing supply chain disruptions, recent strength in the Asian technology sector shows that investors are increasingly discounting short-term geopolitical risks.

Yesterday, we saw indices hit new all-time highs — evidence that traders have been largely overlooking lingering geopolitical risks thanks to positive earnings revisions. Tomorrow, Alphabet, Microsoft, Amazon, and Meta Platforms will report, followed by Apple the next day.

As for the S&P 500 technical picture, the primary task for buyers today is to overcome the nearest resistance level of $7,174. That would help the index gain upside momentum and could pave the way for a surge to $7190. Equally a priority for bulls is control above $7,210, which would strengthen buyers' positions. In the event of a downside move amid reduced risk appetite, buyers must defend around $7,156. A break below that level would likely push the instrument back to $7,138 and could open the way to $7,125.