News
Geopolitical Risk · Inflation Concerns · Market Correction · Oil Prices
The Nasdaq Composite confirmed a correction, tumbling 2.38% and closing 10.7% below its October 29 record high, as escalating Middle East conflict fears, soaring oil prices, and inflation concerns drove a broad Wall Street slump on Thursday.
The S&P 500 and Dow Jones Industrial Average also fell over 1%, marking the biggest one-day decline for the Nasdaq and S&P 500 since January 20. Investors sought safety amid fears of an escalation in the U.S.-Israeli war against Iran, which sent U.S. crude futures up 4.6% and Brent futures up 5.7%.
President Donald Trump's conflicting statements, including a warning about taking control of Iran’s oil and later pausing attacks for 10 days, fueled market uncertainty, as noted by Doug Beath of Wells Fargo Investment Institute. Technology and communications services sectors were hit hardest, with Meta shares dropping nearly 8% and Alphabet losing over 3% following liability verdicts in social media lawsuits.
The Philadelphia Semiconductor Index fell 4.8%, led by Nvidia's over 4% decline. The OECD warned the conflict has derailed global growth and threatens higher inflation, leading traders to no longer price in any U.S. Federal Reserve rate cuts this year, according to the CME Group’s FedWatch Tool.
