Nasdaq-100 Experiences Volatility Amid U.S.-Iran Conflict
The Nasdaq-100 index faced a decline recently due to rising oil prices linked to escalating tensions between the U.S. and Iran, which peaked with a 12% drop from its recent peak. Despite this, the index rebounded significantly, registering a 17% gain between March 30 and April 17, marking the largest 13-day gain since 2020.
Key events included the U.S.-Israel attacks on Iran on February 28 and the closure of the Strait of Hormuz on March 2, which handles 25% of global oil trade. A ceasefire was reached on April 8, allowing the Nasdaq-100 to set a new record high shortly after Iran reopened the Strait on April 17, causing oil prices to tumble.
While the technology sector comprises 60% of the Nasdaq-100, risks remain due to concerns over the sustainability of AI spending as major players like OpenAI announced reduced budgets. Upcoming data centers are reportedly facing delays or cancellations, further impacting major firms like Nvidia and Microsoft.
