On March 26th, the three major U.S. stock indices closed sharply lower collectively, with market risk aversion heating up and tech stocks becoming the main drivers of the decline. By the close, the Nasdaq Composite Index fell 2.38%, the S&P 500 Index dropped 1.74%, and the Dow Jones Industrial Average declined 1.01%. Among them, Meta fell 8% to lead the decline in tech stocks, and Tesla also came under pressure due to analysts’ downward revision of sales forecasts.

The decline in U.S. stocks was mainly affected by the superposition of multiple factors. On the one hand, the Vice Chairman of the Federal Reserve hinted that the Iran war will push up inflation in the short term, and interest rates may remain unchanged, further cooling market expectations for interest rate cuts and highlighting liquidity pressure. On the other hand, the overseas geopolitical situation remains tense. U.S. media reported that the Pentagon is formulating a military plan against Iran, and Trump is considering sending 10,000 ground troops to the Middle East, exacerbating market panic.

Chinese concept stocks also weakened synchronously, with the Nasdaq China Golden Dragon Index falling 2.55%. Popular Chinese concept stocks generally declined, mainly driven by the overall weakness of U.S. stocks and the decline in market risk appetite. In addition, the FTSE China A50 Index futures closed down 0.08%, reflecting the cautious short-term sentiment of overseas markets towards Chinese assets.

Industry insiders analyzed that U.S. stocks will continue to be affected by geopolitical conflicts and Federal Reserve policies in the short term, with increased volatility. Investors need to focus on the progress of the Middle East situation and U.S. inflation data, and cautiously control their positions.