The Nasdaq dropped 2.4 percent on Thursday, leaving the tech-heavy index down nearly 11 percent from its record-high close on October 29 and confirming it has been in a correction since then.

In a broad Wall Street sell-off fuelled by uncertainty about the US-Israeli war on Iran, the Nasdaq in recent days has suffered its worst decline since April 2025, when US President Donald Trump's "Liberation Day" global tariff announcement sent global markets into a tailspin.

The Nasdaq's slide into a correction signals heightened volatility for investors and highlights the vulnerability of tech stocks, including Microsoft, Alphabet and Nvidia, that have surged in recent years due to optimism about AI technology.

With the sell-off driven by fears the Middle East conflict will cripple the global economy, investors are weighing whether the downturn is a temporary dip, similar to the recovery that followed the 2025 sell-off, or the start of a sustained period of risk tied to the war.

The Nasdaq fell almost 23 percent from its 2024 record-high close through April 7, 2025, before recovering and rallying to record highs through last October.

The index is now down nearly 8 percent in 2026 and at its lowest since early September 2025.

Among the biggest weights on the Nasdaq on Thursday was Meta Platforms, dropping 7.9 percent after two verdicts holding it liable for harm to young users sparked fears the social media giant may have to overhaul its sprawling advertising business.

On Thursday, Trump said Iran had allowed 10 oil tankers to sail through the waterway as a "present," and pushed back a deadline for strikes on Iranian power plants to April 6.

His comments on delaying strikes came after the US close, with oil paring the massive gains it had made through the day.

Earlier, Brent crude closed up 5.7 percent at US$108.01 per barrel, and West Texas Intermediate ended up 4.6 percent at US$94.48.

The Nasdaq fell 2.4 percent, to 21,408, the S&P 500 fell 1.7 percent, to 6,477, and the Dow fell 1 percent, to 45,960. (Reuters/AFP)



Edited by Cecil Wong