Finance

The tech-heavy Nasdaq Composite dropped 2.4% today, officially entering correction territory by falling more than 10% from its recent peak. Significant losses in Meta Platforms and Alphabet followed a landmark court ruling finding the companies negligent in a social media addiction lawsuit. Additionally, semiconductor stocks like Micron plummeted as new AI algorithms from Google reduced the projected demand for memory hardware.

Oil prices jumped more than 4% on March 26, with West Texas Intermediate and Brent crude both pushing past the $100 per barrel mark. This surge was driven by increased pressure from the U.S. administration on Iran and concerns over potential disruptions to the Strait of Hormuz. The rise in energy costs has reignited inflation fears, further weighing on treasury notes and broader market stability.

Risk assets across the board saw significant outflows, with Bitcoin falling below the $69,000 level and gold futures dropping 4% to approximately $4,370 an ounce. The downturn in digital assets was exacerbated by news of Iran's rejection of ceasefire terms, leading to a general derivatives unwind. Ethereum and other major Layer-1 blockchains also saw sharp declines, with some down over 20% year-to-date.

U.S. initial jobless claims rose slightly to 210,000 for the week ending March 21, matching market expectations and signaling a stable labor environment. While hiring momentum has slowed compared to previous years, layoffs remain historically low, keeping the labor market in a state of cautious balance. Analysts noted that continuing claims fell more than expected, reaching their lowest levels since mid-2024.

Despite the broad market selloff, the energy sector continues to outperform other industries in 2026 due to skyrocketing crude prices. Investors have pivoted toward traditional energy firms and industrial equipment manufacturers as defensive plays against geopolitical instability. In contrast, the technology sector has faced ongoing pressure this year, currently down roughly 3% as AI-related enthusiasm begins to plateau.