Shares of online advertising giant Alphabet (NASDAQ:GOOGL) jumped 2.9% in the morning session after President Donald Trump signaled a willingness to end the multi-week military conflict with Iran.
This news provided a much-needed boost to markets. The geopolitical tensions had pushed the Nasdaq-100 index into correction territory, defined as a drop of more than 10% from its peak. Concerns over spiking oil prices and broader market uncertainty weighed heavily on investor sentiment, particularly impacting growth-oriented technology stocks. With the possibility of de-escalation in the Middle East, investors showed renewed confidence, leading to a recovery in major tech names. The Technology Select Sector SPDR Fund (XLK) saw gains, reflecting the broader positive shift in the sector.
After the initial pop the shares cooled down to $282.23, up 3.2% from previous close.
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Alphabet’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 3.6% on the news that a Los Angeles jury found major social media platforms negligent, ruling that their products are designed to be addictive and cause harm to young users.
The landmark case involved tech giants Meta and Alphabet, with the jury finding them liable for damages due to the severe negative mental health effects on a young user. Investors were concerned about the potential for increased regulation and costly litigation, which could impact future profitability and force changes to the platforms’ core design and algorithms.
Alphabet is down 10.4% since the beginning of the year, and at $282.23 per share, it is trading 17.9% below its 52-week high of $343.69 from February 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Alphabet’s shares 5 years ago would now be looking at an investment worth $2,737.
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