---
The Longest Losing Streak Since 2022
U.S. equity markets closed out their fifth consecutive week of losses — the longest such streak since 2022. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all ended lower, with the Nasdaq suffering a decline of more than 3%. The Dow officially joined the Nasdaq in correction territory by Friday's close, underscoring the breadth of the sell-off. The lone bright spot was the Russell 2000, which managed a modest half-percent gain, suggesting that small-cap stocks offered a temporary refuge from the carnage hitting large-cap names.
Iran Developments Drive Volatility
The primary catalyst for the week's weakness came from the Middle East. Statements from the White House suggested that Iran was "begging for a resolution," a characterization that Iranian state media quickly disputed. This back-and-forth injected sharp volatility into energy markets. Crude oil swung wildly, starting the trading week around $100 per barrel, plunging to $84 on the same day, and then rallying all the way back to $100 by Friday's close. White House officials expressed cautious optimism that diplomatic talks with Iran are making progress, but the uncertainty continues to weigh on sentiment across asset classes.
Magnificent Seven Drag Down the Broader Market
The so-called "Mag 7" mega-cap technology stocks were a major source of weakness, sliding 5% over the week and now sitting nearly 20% below their all-time highs. Apple was the only member of the group to finish in positive territory. Nvidia, the world's most valuable company, fell to its lowest level since September. Meta dropped 11%, while Alphabet tumbled 9%, with the latter facing additional pressure from being found liable in a social media addiction lawsuit.
Memory Chip Stocks Take a Hit
The semiconductor space saw particularly steep declines among memory chip makers. Micron plunged 16% and SanDisk fell 13% over the course of the week. The sell-off was fueled in part by Alphabet's introduction of Google Turbo Quant, an AI memory compression algorithm designed to enhance large language model performance while significantly decreasing memory usage. The implication that future AI infrastructure could require less physical memory sent shockwaves through the chip sector.
Looking Ahead
The coming week brings a shortened trading schedule, but several important events remain on the calendar. Nike is set to report earnings on Tuesday, offering insight into the state of the consumer. Meanwhile, the March jobs report will be released on Friday — notably, on a day when markets are closed — setting the stage for a potentially volatile reopening as investors digest the employment data heading into the following week.
The convergence of geopolitical risk, tech sector fragility, and shifting AI infrastructure dynamics has left markets in a precarious position. Whether diplomatic progress with Iran materializes and how investors absorb upcoming economic data will likely determine whether this losing streak extends further or finally finds a floor.