Global equity markets faced significant pressure this week amid escalating Middle East tensions and soaring energy prices, with the technology sector bearing the brunt of the sell-off. The tech-heavy Nasdaq Composite Index fell 3.23% for the week, marking its largest single-week decline since April 2025, when former U.S. President Donald Trump's proposal of large-scale tariffs triggered market panic.
During this market correction, major technology stocks generally weakened. Alphabet Inc. dropped nearly 9% this week, Microsoft Corporation declined approximately 7%, while both NVIDIA Corporation and Amazon.com, Inc. fell more than 3.2%. Tesla, Inc. saw a decrease of nearly 2%. In contrast, Apple Inc. demonstrated relative stability, posting a slight gain over the week.
Meta Platforms, Inc. was among the hardest-hit tech giants, plunging over 11% this week. Its stock came under pressure primarily due to two consecutive unfavorable legal rulings concerning its responsibility for platform content moderation, further heightening market concerns about its core advertising business.
Meanwhile, memory chip leader Micron Technology, Inc. also experienced significant selling pressure, with its shares falling more than 15% for the week. Despite the company's previously reported strong financial results - with latest quarterly revenue nearly doubling year-over-year to $23.86 billion and projected gross margin of approximately 80% for the next quarter - the positive fundamentals failed to boost market sentiment against the backdrop of surging oil prices and heightened macroeconomic uncertainty. However, from a longer-term perspective, the stock has still gained nearly 300% over the past 12 months.
The core drivers of market volatility stemmed from energy prices and geopolitical risks. As tensions escalated around the Strait of Hormuz, international oil prices closed at their highest level in over three years on Friday, further exacerbating concerns about inflation and economic prospects. Analysts noted that high oil prices are suppressing risk asset performance through both cost and expectation channels.
On the geopolitical front, the situation regarding Iran remains highly uncertain. A spokesperson for Iran's armed forces stated that Iran is formulating conditions for ending the war and emphasized its dominant advantage on the battlefield. Meanwhile, according to media reports, Iran is expected to respond to the U.S.-proposed "15-point peace plan" by Friday, but may reject some key requirements. The plan involves Iran making concessions on its nuclear program, missile projects, and regional influence in exchange for sanctions relief. To buy negotiation time, former President Trump has extended the deadline for striking Iranian energy facilities to April 6. Analysis suggests this "delayed but not canceled" strategy keeps markets oscillating between short-term relief and medium-term uncertainty.
Regarding capital flows, investors clearly shifted away from the technology sector this week, moving toward more defensive assets. Meanwhile, market attention is beginning to turn to upcoming key catalysts, including what could be SpaceX's largest-ever IPO and Tesla's forthcoming quarterly delivery figures.