The Nasdaq Composite experienced its first loss in 13 sessions on Monday, concluding its most extended winning streak since 1992. The downturn coincided with heightened geopolitical tensions after President Trump threatened Iran with potential military action if a new peace deal isn't reached before the ceasefire between Israel and Lebanon expires on Tuesday.
The reversal occurred as Iran declined further negotiations in Pakistan, and the U. S. seized an Iranian cargo ship over the weekend. These events contributed to renewed concerns about supply disruptions, particularly in the Strait of Hormuz, which Iran briefly reopened before closing again.
The Dow Jones Industrial Average also settled lower, and the S&P 500 snapped its five-day win streak. Oil prices surged due to the renewed tensions, with May-dated West Texas Intermediate (WTI) crude oil rising approximately 7% to finish at $89.61 per barrel. Meanwhile, the Cboe Volatility Index (VIX), often referred to as Wall Street's fear gauge, saw its first gain in nine sessions.
Despite the day's losses, the Nasdaq's recent performance reflects a strong comeback for tech stocks, with the index achieving its largest three-week percentage gain since April 2020. The surge also saw the collective market value of the "Magnificent Seven" stocks increase by $2.51 trillion over eight trading days. However, investors remain cautious as geopolitical uncertainties continue to influence market sentiment.
