US markets opened in the red today as tensions between the US, Israel, and Iran continue to escalate. At 10 am ET, the Dow Jones Industrial Average fell 136.92 points, or 0.30%, to 45,884.51. S&P 500 dropped 52.81 points, or 0.80%, to 6,553.68, Nasdaq Composite led the losses, falling 266.66 points, or 1.21%, to 21,824.03.
This is fourth straight week of losses for US markets, which shows continued pressure on the markets. As Nasdaq declined more than 200 pts, at 10 am ET, Super Micro Computer plunged between 22% and 27%, Tesla fell 3.2%. Nvidia also dropped around 1%.
Geopolitical tensions
The decline comes after Iran and Israel exchanged strikes overnight, with Iran also targeting energy sites in the Gulf. Rising geopolitical tensions are making investors nervous, leading to a sell-off in equities.
Israeli Prime Minister Benjamin Netanyahu said Israel was assisting the US “in intel and other means” to open the Strait of Hormuz. He added that Iran had lost the ability to enrich uranium and produce ballistic missiles, which indicates the conflict could end sooner than expected.
SMCI founder’s arrest
Super Micro Computer Inc shares fell on Friday after three people, including co-founder Yih-Shyan Liaw, were charged with trying to illegally send advanced U.S. artificial intelligence technology to China.
US Department of Justice said earlier that the three individuals were involved in a plan to ship high-performance AI servers to China, breaking U.S. export rules. Super Micro confirmed that those charged include two of its employees and a contractor. Liaw was arrested on Thursday, according to the DOJ.
“The indictment unsealed today details alleged efforts to evade U.S. export laws through false documents, staged dummy servers to mislead inspectors, and convoluted transshipment schemes, in order to obfuscate the true destination of restricted AI technology—China,” John A. Eisenberg, Assistant Attorney General for National Security, said in a statement.
The DOJ said the scheme led to at least $2.5 billion in sales for Super Micro between 2024 and 2025. Super Micro clarified that it has not been charged in the case and is cooperating with authorities. The company also said it has put two employees on administrative leave and has fired the contractor involved.
Unexpected fall in gold and silver
On Thursday, March 19 Gold and silver joined a broader market sell-off, dropping about 5% and over 10% respectively, as rising inflation fears and escalating tensions around the Iran conflict weighed on global markets.
Crude oil prices remained largely steady during the day, with West Texas Intermediate (WTI) and Brent futures hovering near the flatline. However, both benchmarks are still up more than 40% since the conflict began, keeping concerns about inflation and energy costs alive.
Trump criticises NATO over oil and military support
President Donald Trump continued his criticism of NATO, calling it a “paper tiger” without the US. “Now that fight is Militarily WON, with very little danger for them, they complain about the high oil prices they are forced to pay, but don’t want to help open the Strait of Hormuz, a simple military maneuver that is the single reason for the high oil prices,” he said in a Truth Social post.
Markets near correction territory
Both Dow and Nasdaq are now approaching correction levels. Dow is about 8.6% below its record high set on February 10, Nasdaq is more than 8% below its all-time high from October 29. S&P 500 is still about 5% below its peak, showing that it has held up slightly better than the other indices.
Deutsche Bank’s Jim Reid noted that Friday marks the 15th trading day since the conflict began. “That is on average when we bottom out in U.S. equities after a geopolitical shock,” he told CNBC. “However it would be hard to trade on the back of averages at the moment with so much uncertainty so headlines will be more important than history here but if you’re looking for optimism the normal geopolitical playbook would at least give you hope. So far we haven’t deviated from it.”
Concerns over economic impact
Unlimited CEO Bob Elliott warned that markets may still be too optimistic about the economic impact of the conflict. “When you look at stocks compared to bonds, the markets are pricing in stronger growth since the beginning of this conflict. That doesn’t make any sense,” he told CNBC. “Households basically getting something like 1% to 2% of real purchasing power taken away from them, even if this conflict resolves tomorrow.”
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.