U.S. stocks plummeted, the Dow Jones fell into correction territory, the "fear index" surged, and Brent crude oil soared.

2026.03.28

Word count: 1687, estimated reading time about 3 minutes

Author | Yicai Hu Yajie

The U.S. stock market plummeted on Friday, with all three major indices closing at their lowest levels in over seven months. The Dow Jones Industrial Average has fallen more than 10% from its all-time closing high set on February 10, officially entering correction territory, becoming another major index to break this threshold after the Nasdaq. The ongoing Middle East conflict, lasting over a month, has continuously disrupted market sentiment, significantly cooling investors’ risk appetite. The Chicago Board Options Exchange Volatility Index (VIX), viewed as a “fear gauge,” rose by 3.61 points to close at 31.05, the highest level since late April of last year.

At the close, the Dow Jones Industrial Average dropped by 793.47 points to 45166.64 points, down 1.73%; the S&P 500 fell by 108.31 points to 6368.85 points, down 1.67%; and the Nasdaq Composite decreased by 459.72 points to 20948.36 points, down 2.15%. All three major indices have declined for the fifth consecutive week, with the S&P 500 setting a record for the longest weekly losing streak in nearly four years.

From a weekly performance perspective, the S&P 500 index fell by more than 2.1% this week, the Nasdaq dropped over 3.2%, and the Dow was down about 0.9%.

In terms of sectors, eight of the eleven sectors in the S&P 500 saw declines, while three posted gains. The energy sector and consumer staples sector rose against the trend, gaining 1.87% and 0.78%, respectively. Weighed down by Amazon, the consumer discretionary sector fell by about 3.1%, becoming the worst-performing sector. Meanwhile, software stocks also faced renewed selling pressure, with the S&P 500 Software and Services Index dipping to its lowest level since November 2023.

Large tech stocks generally weakened. Nvidia fell by 2.17%, Tesla by 2.76%, Meta by 3.99%, Microsoft by 2.51%, Apple by 1.62%, Amazon by 3.95%, Google Class A shares by 2.34%, Google Class C shares by 2.49%, Broadcom by 2.82%, and Advanced Micro Devices by 0.87%.

Chinese concept stocks were under pressure overall, with the Nasdaq Golden Dragon China Index closing down 1.9%. Alibaba fell by 2.17%, Pinduoduo by 0.81%, Baidu by 1.63%, JD.com by 1.65%, Trip.com by 3.44%, Tencent Holdings (ADR) by 0.89%, NIO by 4.50%, and Futu Holdings by 1.76%.

According to a report by CCTV News, on March 27 local time, a senior Iranian security official warned that if the U.S. launches ground operations in the Middle East, Iran will take reciprocal actions in response. The official stated that once the U.S. enters the ground combat phase, Iran will have the corresponding authority to retaliate against the source of threats. He also emphasized that any military actions by the “enemy” in the Strait of Hormuz could result in a complete closure of the strait, with no restrictions on the closure duration.

U.S. Secretary of State Rubio stated that the U.S. can still achieve military objectives without deploying ground troops. Previously, President Trump indicated that he would give Iran a 10-day deadline, otherwise its energy facilities would face strikes.

Ken Polcari, Chief Market Strategist at SlateStone Wealth, stated that the overall market sentiment has turned pessimistic, and the indices have entered a correction phase. He believes that this round of adjustments could expand to 15% to 20%.

The rise in energy and commodity prices has intensified inflationary pressures, undermining market expectations for a Federal Reserve interest rate cut. Futures markets indicate that the likelihood of a rate cut this year has been largely excluded, and the market is beginning to price in rate hike risks.

According to the CME FedWatch Tool, the market currently estimates the probability of a 25 basis point rate hike by the Federal Reserve at the October meeting to be about 25%.

In terms of economic data, a survey conducted by the University of Michigan showed that the final consumer confidence index for March was 53.3, down from 56.6 in February, marking the lowest level since December 2025.

In the bond market, the yield on the U.S. 10-year Treasury bond was reported at 4.444%, up 2.8 basis points, having briefly touched a session high of 4.482%; the yield on the 2-year Treasury bond was reported at 3.918%, down 6.6 basis points, after previously rising above 4%.

In the energy market, oil prices surged. New York crude futures rose by 5.46%, to $99.64 per barrel; Brent crude rose by 4.22%, to $112.57 per barrel. Overall volatility this week was relatively limited, but since the outbreak of the conflict on February 27, Brent oil prices have risen approximately 53%, and U.S. crude has increased by about 45%.

Oil consultancy Ritterbusch & Associates stated that the market is becoming “desensitized” to statements about easing tensions, with supply and demand expectations still dominating oil price trends.

The International Energy Agency’s assessment shows that the current conflict has led to a daily reduction of about 11 million barrels in global oil supply, with the impact level even exceeding the cumulative effects of the oil crises in the 1970s.

Macquarie analysts believe that if the conflict quickly eases, oil prices may retreat but will still be above pre-conflict levels; if the fighting continues until the end of June, oil prices could rise to $200 per barrel.

Gold prices rose. At the end of trading in New York, spot gold was up 2.6%, at $4491.78 per ounce, having briefly touched $4554.39; COMEX gold futures rose by 2.7%.

Daniel Pavilonis, Senior Market Strategist at RJO Futures, stated that the recent market adjustments have provided an opportunity for allocation in gold.

Deutsche Bank raised its year-end gold price target to $5000 per ounce, believing that previous pullbacks are unlikely to last.

Spot silver rose by 2.2%, to $69.54 per ounce.

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