Nasdaq Falls into Correction, Trump Halts Iran Strike

The Nasdaq has entered a correction, with stocks plummeting 8-10% below their high. This decline was partly attributed to worries over the Iran war, prompting Trump to pause his plans to attack Iran's energy infrastructure for 10 days.

The Nasdaq Composite entered correction territory on March 26, falling 2.38% (521.74 points) to close more than 11% below its October 2025 record high. The S&P 500 dropped 1.74% to 6,477.16 while the Dow shed 469 points, or 1.01%. Selling pressure intensified as investors weighed escalating Middle East tensions alongside a tech-specific catalyst: Google's announcement of breakthrough AI technology that could reduce memory demand by sixfold.

President Trump announced via Truth Social an extension of the pause on Iran energy-infrastructure strikes by 10 days to April 6, citing "ongoing talks" . The move came on Day 27 of the broader U.S.-Israel and Iran conflict, with reports of potential U.S. ground forces deployment fueling further anxiety across equity markets. Defense stocks saw mixed action as investors recalibrated risk exposure.

The convergence of geopolitical risk and tech disruption fears may continue to weigh on sentiment heading into Q1 earnings season. A successful Iran deal before the April 6 deadline could spark a relief rally, while failure to reach an agreement may push the Nasdaq deeper into correction territory. Oil prices and defense sector activity remain key leading indicators for near-term market direction.