Wall Street Hits Near Seven-Month Low, Stagflation Risks Strengthen
US stock indexes fell to a nearly seven-month low on Friday (March 27), as war in the Middle East and trade disruptions heightened concerns of stagflation. The S&P 500, Dow, and Nasdaq 100 each fell about 0.7%, as investors assessed that the energy boom and geopolitical uncertainty were still weighing on growth prospects while maintaining price pressures.
President Donald Trump extended a pause in attacks on Iranian energy infrastructure, but explosions in the region again disrupted tanker traffic in the Strait of Hormuz. Rising energy prices had already dampened expectations for a Fed rate cut this year, and pressure intensified after China opened a trade investigation into the US in retaliation for Washington's tariffs.
The technology sector was the main drag as risk-offs eroded interest in speculative AI themes. Tesla, Microsoft, and Oracle fell nearly 2%, while Alphabet fell about 3.5%.
Pressure was also seen on memory stocks after new research from Alphabet promoted less computationally demanding AI models, fueling concerns about demand for computing infrastructure. On the other hand, Meta has fallen nearly 10% since Wednesday, affected by layoffs and a court ruling that deemed its social media platform addictive.
Overall, the combination of energy risks, uncertainty over the Hormuz route, and trade friction reinforces the narrative that the market is facing an uneasy mix: slowing growth with inflationary pressures that are difficult to alleviate quickly. This makes risk asset valuations increasingly sensitive to geopolitical and policy headlines.
Source: newsmaker.id
