Tech-heavy Nasdaq-100 and Composite fall more than 2% amid investor flight from risk assets due to Middle East tensions.
The Nasdaq-100 slid 2.2% and the Nasdaq Composite declined 2.6% on Thursday, led by a sell-off in technology stocks. The retreat reflected broader risk aversion as geopolitical tensions in the Middle East pushed oil prices above $100 per barrel.
Prior to the drop, both indexes had shown resilience amid fluctuating market conditions, but the surge in oil prices reignited concerns over inflation and economic stability. Comparable periods of geopolitical uncertainty have historically triggered similar rotations away from growth sectors.
Investors shifted capital into safer assets, exacerbating losses in equities tied to higher valuations and interest rate sensitivity.