Stocks Plummet to Six-Month Lows Amid Ongoing Middle East Tensions

Market Update: March 27

U.S. Stocks Plummet as Megacaps Drag Down Indexes

The major U.S. indexes fell to their lowest levels in over six months on Friday, with the Dow Jones Industrial Average down 1.45% to 45,293.53, the S&P 500 down 1.42% to 6,385.27, and the Nasdaq Composite down 1.97% to 20,987.14.

The decline was led by megacap stocks, with Nvidia down nearly 2% and Amazon dropping more than 3%. The S&P 500 software and services index also fell, down nearly 3% and touching its lowest level since April 7.

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Carnival Corp was a notable loser, down nearly 6% after cutting its annual adjusted profit forecast. Fellow cruise operator Norwegian fell almost 7%.

The surge in oil prices, with U.S. crude up 4.45% to $98.68 a barrel and Brent up to $112.16 per barrel, has fueled inflation fears and dampened expectations for interest rate cuts. According to the CME's FedWatch Tool, money market participants are no longer pricing in any easing from the U.S. Federal Reserve this year.

The CBOE Volatility Index, a measure of market fear, was up 3.41 points to 30.85. The Russell 2000 confirmed it was in correction territory, defined as a drop of 10% from its prior high.

Declining issues outnumbered advancers by a 2.91-to-1 ratio on the NYSE and by a 3.44-to-1 ratio on the Nasdaq. The S&P 500 posted 22 new 52-week highs and 19 new lows, while the Nasdaq Composite recorded 22 new highs and 314 new lows.

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