Iran Conflict Pushes Nasdaq Into 10% Correction; Dow Falls 793 Points

Nasdaq’s move into correction territory dominates the latest price action, with the Dow joining as it closed down 793 points and more than 10% from its record.

This marks the first time Nasdaq has breached the 10% correction line after a week of heavy risk-off moves tied to the Iran conflict and energy-market volatility.

CBC

The scene remains bleak as the S&P 500 heads into its fifth straight down week, underscoring the risk-off impulse that followed this week's diplomacy turbulence.

Oil markets remain the epicenter of the sell-off.

Brent crude settled around 105.32 a barrel, up about 3.4%, while U.S. crude hovered near 99.64.

The Edge Malaysia

Market forecasters warn that sustained conflict could keep energy supplies tight, with Macquarie projecting a possible spike to $200 a barrel if the war drags on.

Investors are simultaneously looking for selective opportunities as risk appetite shifts.

The Edge reports that Barclays, CIBC Capital Markets and Truist Advisory Services Inc are advising clients to 'start putting money to work in a slow and methodical fashion,' despite near-term risk and volatility.

JPMorgan Chase & Co's trading desk has reportedly flipped its US equity view to neutral from tactically bearish and is building a 'shopping list' of energy and mega-cap technology stocks.

But sentiment remains cautious, with analysts warning that risk appetite can be fragile amid the 'fog of war'.

The latest price action is framed by ongoing diplomatic friction between the U.S. and Iran and the fear that the war could disrupt energy markets across West Asia for an extended period.

Western outlets note the tension's impact on risk sentiment, while some analysts point to a historical pattern of rebounds after geopolitical crises as a potential silver lining.

CBC

Macquarie's dire scenario of oil hitting 200 per barrel if the conflict continues through June underscores how energy price risk remains a core driver of equities, complicating any rapid market recovery.

Investors should stay disciplined but avoid a blanket sell-off as the geopolitics continue to unfold.