Nasdaq Falls into Correction Due to Tech Stocks Dropping and Iran War Uncertainty

The Nasdaq 100 has fallen into correction territory, marking a decline of more than 10% from its recent highs as major U.S. tech stocks bear the brunt of a broad-based selloff. The index's slide has been driven by sharp drops in mega-cap technology names, with investors reassessing valuations amid deteriorating macro conditions and rising geopolitical risk.

Uncertainty over the ongoing conflict with Iran has emerged as a key catalyst for the market instability, rattling investor confidence and sending capital flowing out of growth-oriented sectors. Rising oil prices linked to the conflict have compounded fears of persistent inflation, adding pressure to an already fragile market environment.

The correction marks a significant turning point for tech investors who had ridden a multi-year rally fueled by AI enthusiasm. With the Nasdaq now in correction territory, market participants are closely watching whether support levels hold or if the selloff deepens into bear market territory.