Market correction deepens
U.S. and Hong Kong indexes slipped into correction territory as investors price oil‑driven rate fears, while Goldman Sachs warned traders may be overestimating Fed hawkishness. The sell‑off underlines fragility in AI and chip valuations after a period of strong multiples. (cnbc.com) (ig.com)
The Nasdaq Composite is about 11% below its Oct. 29 record-high close, officially in correction after mid‑to‑late‑March losses. (axios.com) (axios.com) The Dow Jones Industrial Average closed at 45,166.64 after a 793‑point drop, leaving it roughly 10.1% below its mid‑February peak. (markets.financialcontent.com) (markets.financialcontent.com) Brent crude climbed to roughly $106.70 and West Texas Intermediate traded above $100 a barrel this week, moves linked to the Iran conflict that pushed energy benchmarks sharply higher. (forbes.com, thestreet.com) (forbes.com) CME Group’s FedWatch tool showed the probability of a Fed rate increase by the end of 2026 rose to about 52%, even as Goldman Sachs said markets had “priced a much larger hawkish shock than historical experience would suggest.” (cnbc.com) (cnbc.com) Nvidia shares sit roughly 21% below their November 2025 peak after a recent multi‑day sell‑off, a drop accompanied by reported retail investor selling, while TSMC fell about 3.1% on March 30 amid sectorwide profit‑taking. (livemint.com, bloomberg.com, yahoo.com) (livemint.com) Goldman has raised its recession odds to roughly 30% as it models higher inflation tied to oil, projecting Brent around $105 in March and $115 in April under scenarios of six‑week Hormuz disruption. (msn.com, cnbc.com) (msn.com) Smaller‑cap breadth has already been impaired: the Russell 2000 hit correction territory last week and the S&P 500 is still roughly 7.2% below its recent closing high, extending a multi‑week losing streak for U.S. equities. (efgha.com, axios.com, forbes.com) (efgha.com) IG’s weekly Market Navigator flagged stagflation fears and singled out the Hang Seng as entering correction, highlighting that near‑term risks pivot on incoming U.S. jobs and inflation prints. (ig.com) (ig.com)
