The Nasdaq Composite dropped for the sixth session in a row, marking the longest losing run in the past year and a half. The decline coincides with Nvidia’s plunge, compounding the market’s recent problems linked to global unrest and persistent inflation.
While the broad S&P 500 fell 0.88% to 4,967.23, below the 5,000 mark, the tech-heavy Nasdaq retreated 2.05% to 15,282.01. Both achieved their sixth consecutive day without a positive day, a streak neither has experienced since October 2022.

If the current slump in Magnificent Seven equities continues until the closing, it would have lost about $934 billion from its market capitalizations this week, making it the group’s worst-ever weekly loss of market value.
Netflix saw a more than 9% decline even after posting better-than-expected quarterly results. Although the streamer’s subscriber base increased by 16% over the prior year, it announced that it would stop reporting paid subscriptions as of 2025.

The S&P 500 index has dropped 4.6% this month, and the three main US indices are headed for their first negative month since October last year. The S&P 500 is up 5.1% and the Nasdaq Composite has added 3.9%, while the Dow Jones Industrial Average has only up 0.2% since the beginning of 2024, almost wiping out its gains.
The markets revised when the Federal Reserve might start reducing interest rates due to strong economic indicators and persistent inflation. Not helping has been the rise in oil prices brought on by increased Middle East unrest.
This month’s data revealed that inflation is still persistently higher than the Fed’s 2% target. Employers exceeded forecasts in March by adding an astounding 303,000 new jobs. Spending at US stores increased for a second straight month, demonstrating the tenacity of US consumers despite rates sitting at a 23-year high.
Subsequently, Fed Chair Jerome Powell stated on Tuesday that rate reductions could happen later than anticipated and that the central bank will need to see more evidence of inflation moderating before changing course.
As per the CME FedWatch Tool, traders project the Fed will start easing rates in July or September. Up to six rate cuts in 2024, beginning in March, were anticipated by investors early this year.
The IMF raised its prediction for this year’s growth in the US economy but cautioned that controlling inflation will be difficult. Even though the US would play a major role in global growth, the group claimed the American economy is “overheated.”
Tensions rising in the Middle East are adding to Wall Street’s problems. Iran retaliated with airstrikes on Israel over the weekend for what it believed to be an Israeli strike on the facility housing its embassy in Syria earlier this month. In retaliation, Israel launched an attack on Iran.  Though Iranian officials and state-affiliated media have attempted to downplay the incident thus far, Israel has remained silent.