Stocks Slump on Iran War and Weakness in Chipmakers

The S&P 500, Dow, and Nasdaq all closed lower amid soaring oil prices and concerns over the Iran conflict.

Mar. 26, 2026 at 10:24pm

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U.S. stock indexes fell sharply on Thursday, with the Nasdaq 100 dropping to a 6.5-month low. The sell-off was driven by surging oil prices due to the ongoing conflict with Iran, as well as weakness in semiconductor stocks following a new compression technique proposed by Google researchers that could reduce memory needed for AI workloads. The Magnificent Seven tech giants also retreated, weighing on the broader market.

Why it matters

The Iran conflict is disrupting global oil supply and raising inflation expectations, which is putting pressure on stocks. The weakness in chipmakers is also a concern, as they are a key component of the technology sector that has been a major driver of the market's performance.

The details

Stocks slumped on Thursday amid soaring oil prices, as uncertainty persists over Iran's willingness to engage in talks on a ceasefire. WTI crude oil prices jumped more than 4% after Axios reported the Pentagon is developing military options for a 'final blow' in Iran that could include the use of ground forces and a massive bombing campaign. Higher bond yields also undercut stocks as a jump in crude oil prices boosted inflation expectations. The weakness in chip makers on Thursday also weighed on the broader market, following a new compression technique proposed by Google researchers that could reduce the memory needed for AI workloads.

  • On Thursday, the S&P 500 Index closed down -1.74%, the Dow Jones Industrial Average closed down -1.01%, and the Nasdaq 100 Index closed down -2.38%.
  • June E-mini S&P futures fell -1.72%, and June E-mini Nasdaq futures fell -2.34%.

The players

S&P 500 Index

A stock market index that tracks the 500 largest U.S. publicly traded companies.

Dow Jones Industrial Average

A stock market index that tracks 30 large U.S. publicly traded companies.

Nasdaq 100 Index

A stock market index that tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange.

Google

A multinational technology company that provides internet-related services and products.

Iran

A country in the Middle East that is currently engaged in a conflict with the United States and its allies.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

The ongoing conflict with Iran and its impact on global oil supply, as well as the weakness in the technology sector, particularly in chipmakers, are significant factors weighing on the stock market. Investors will be closely watching for any developments in the Iran conflict and the performance of key technology companies to gauge the market's direction going forward.