Geopolitical Tensions

• Wall Street experienced a sharp selloff on Wednesday, March 19, 2026, driven by intensifying geopolitical conflicts between the U.S.-Israel force and Iran, sending major indices to their lowest closes of the year. • The Dow Jones Industrial Average fell 1.6% or 768.11 points to 46,225.15, with 28 of 30 components declining; the S&P 500 dropped 1.4% to 6,624.70; and the Nasdaq Composite slid 1.5% or 327.11 points to 22,152.42. • The CBOE Volatility Index (VIX) surged 12.2% to 25.09, reflecting elevated market fear and uncertainty about Middle East implications for the U.S. economy.

• The S&P 500 declined 1.6% last week, marking its third consecutive weekly drop, with the Dow falling 2% and Nasdaq shedding 1.3% due to soaring oil prices and broad market selling. • Surging oil prices from geopolitical tensions, including US-Iran escalation, drove the downturn, as investors brace for NVIDIA GTC AI event and FOMC rate decision this week (March 16-20, 2026). • Markets now price only a 33% chance of a June rate cut, down from 57% last month, amid persistent inflation data; Thursday's jobless claims will gauge labor market health.

• The S&P 500 declined 1.6% for its third consecutive weekly loss, while the Dow Jones Industrial Average fell 2% and the NASDAQ shed 1.3% as geopolitical tensions and surging oil prices created broad selling pressure across all major indices. • Investors face a critical week ahead with the NVIDIA GTC conference (the "AI Oscars") scheduled alongside the Federal Reserve's FOMC interest rate decision on Wednesday and jobless claims data on Thursday. • Persistent inflation has dramatically shifted market expectations, with traders pricing in just a 33% probability of a June rate cut compared to 57% one month ago, reflecting heightened uncertainty about the Fed's monetary policy path.