Nasdaq falls into correction territory! Facebook drops nearly 8%, Trump issues a "warning," rate hike expectations rise, and gold prices plummet.

Technology stocks lead the decline, with the Nasdaq falling more than 10% from its previous high, confirming a technical correction zone.

Nasdaq has fallen over 10% from its previous high

Trump’s repeated statements triggered market risk aversion

Oil prices surged, intensifying inflation and rate hike expectations

U.S. stocks dropped sharply on Thursday amid growing concerns that the conflict between the U.S. and Israel over Iran could escalate, driving oil prices higher and increasing inflation expectations. Risk aversion quickly intensified. All three major indices declined, with the tech-heavy Nasdaq dropping over 2%, more than 10% below recent highs, entering a technical correction zone. The S&P 500 and Dow Jones Industrial Average also fell more than 1%.

By the close, the Dow fell 469.38 points to 45,960.11, down 1.01%; the S&P 500 declined 114.74 points to 6,477.16, down 1.74%; the Nasdaq dropped 521.75 points to 21,408.08, down 2.38%. The Nasdaq and S&P 500 posted their largest single-day declines since January 20.

【Top Stocks Performance】

Major tech stocks weakened overall, with Tesla down 3.59%, Amazon down 1.97%, Microsoft down 1.37%; Apple edged up slightly by 0.11%.

Meta and Alphabet faced significant pressure. A jury previously ruled that both companies are responsible for harm caused by social media to minors, raising legal risks and dragging down the sector. Meta fell 7.92%, Alphabet declined 3.06%.

In sectors, eight of the eleven S&P 500 sectors declined, three rose. Communication services and technology led the declines with 3.46% and 2.74%, respectively. Energy and utilities led gains with 1.57% and 0.23%.

The Philadelphia Semiconductor Index, after rising for three consecutive days, sharply fell 4.8%. Nvidia dropped 4.16%, TSMC fell 6.22%, AMD declined 7.49%, Broadcom down 2.95%.

The Nasdaq Golden Dragon China Index fell 2.55%. Alibaba declined 3.43%, Pinduoduo down 1.94%, JD.com down 1.92%, Baidu down 4.92%. The new energy vehicle sector saw notable declines, with NIO down 3.81%, Xpeng down 6.63%, and Pony.ai dropping over 14%.

【Market Overview】

According to CCTV News, President Trump again pressured Iran over ceasefire negotiations, warning them to take negotiations seriously “soon, or it will be too late.” After the close, Trump announced that, at Iran’s request, the attack on Iranian energy facilities would be paused for 10 days, with military actions postponed until the evening of April 6.

Doug Beath, global equity strategist at Wells Fargo Investment Institute, said market volatility has accelerated significantly, and conflicting signals around the conflict make it difficult for investors to form clear expectations. “Uncertainty is dominating market trends, more like a ‘fog of war.’”

Peter Tuz, president of Chase Investment Counsel, said that since the conflict erupted, markets tend to weaken on Fridays, and the S&P 500 may follow the Nasdaq into correction. He believes that after years of gains, a 10-20% pullback is not surprising, but weak technicals could further suppress market sentiment before the situation clarifies.

On economic data, the U.S. Labor Department reported that initial unemployment claims increased by 5,000 to 210,000 for the week ending March 21, in line with expectations; continuing claims fell to 1.82 million for the week ending March 14, the lowest in nearly two years, indicating the labor market remains resilient.

In the bond market, U.S. Treasury yields rose. The 10-year yield increased to 4.404%, up 7.8 basis points; the 2-year yield rose to 3.967%, up 8.6 basis points. Futures markets suggest about 15 basis points of rate hikes are priced in for this year.

Federal Reserve Governor Lisa Cook said that Middle East conflicts have shifted the risk balance, making inflation risks more prominent. “The overall labor market remains balanced but still somewhat fragile.”

【Commodities Performance】

International oil prices surged significantly. At the close, NYMEX May crude futures rose $4.16 to $94.48 per barrel, up 4.61%; Brent crude futures increased $5.79 to $108.01 per barrel, up 5.66%.

Precious metals saw sharp declines. Spot gold fell 2.79% to $4,379.68 per ounce; COMEX gold futures dropped 3.85% to $4,376.90 per ounce.