2026.3.31 US Market Close | Tech stocks slide as oil prices jump on heightened Iran risk

On March 31, the New York stock market closed mixed as international oil prices surged due to heightened geopolitical risks from Iran. The Dow Jones edged up, boosted by strong performance in energy stocks, but the tech-heavy Nasdaq fell amid growing inflation concerns. - Dow Jones: +0.11% - Lifted by energy companies benefiting from the surge in oil prices. - S&P 500: -0.39% - Weighed down by spreading inflation fears due to the oil price hike. - Nasdaq: -0.73% - Tech stocks weakened on concerns over soaring oil and potential interest rate hikes. Key Market Drivers - Heightened Iran Risk and Surging Oil Prices: As the conflict in Iran entered its fifth week with Houthi involvement, West Texas Intermediate (WTI) crude oil jumped over 5% to surpass $105 a barrel. This was driven by supply chain fears as the Bab el-Mandeb Strait is now threatened, in addition to the Strait of Hormuz. - Tech and Semiconductor Weakness: Concerns that the oil price surge could lead to inflationary pressure and interest rate hikes caused a significant drop in tech stocks, which are sensitive to future growth valuations, particularly within the semiconductor sector. - Weakening Consumer Sentiment and the Fed's Stance: The March Consumer Confidence Index came in at 88, below expectations, indicating weakening consumer sentiment. Meanwhile, Fed Chair Powell commented that the energy price shock could be temporary, partially easing the market's rate hike fears. - Awaiting Key Economic Data: The market's focus is now on the March jobs report, set to be released this Friday (April 3). This will be a crucial indicator for gauging the Fed's next move. Key Stocks - Micron (MU): Tumbled nearly 9% amid weakening investor sentiment across the semiconductor sector. - Intel (INTC): Dropped 4%, impacted by the oil price surge and sector-wide headwinds. - AMD (AMD): Fell 2.8%, in line with the broader tech sell-off. - Nvidia (NVDA): Declined 1%, following the weakness in tech stocks. - Palo Alto Networks (PANW): Rose 1.57% on expectations of its evolution into a leading cybersecurity platform for the AI era.