US Market Crash: American stock market crashed due to rise in crude, know why investors’ confidence wavered?

US Market Crash: Rising crude oil prices and inflation concerns have shaken the American stock market. A huge fall was seen in Wall Street today on March 27. Investor confidence has been shaken amid rising crude oil prices and signs that the conflict with Iran could be prolonged. Especially a huge decline was seen in tech stocks, due to which the Nasdaq-100 index officially went into the “correction” zone.

decline in early trade

As of 9:45 a.m. in New York, the S&P 500 index was down 0.6%. The index is now on track to close its fifth consecutive week in decline, its longest losing streak since 2022. Meanwhile, the Nasdaq-100 index fell 0.7%. With this decline, the index is now trading more than 10% below its October high. This type of movement is usually called a “correction”.

Rise in oil prices, main reason

The biggest pressure on the American stock market is due to the rapid increase in crude oil prices. On Friday, Brent crude futures reached $111 per barrel, further increasing investors’ concerns. Experts say that rising oil prices put direct downward pressure on stock markets, as they increase the risk of rising inflation and increase the operating expenses of companies.

Uncertainty increased due to Iran-Israel tension

The increasing military tension between Iran and Israel in the Middle East has shaken global markets. Exchange of missiles continues between the two countries, while America is also playing an active role in this crisis. US President Donald Trump is trying to hold peace talks, yet the situation remains tense. According to reports, America is also considering deploying additional troops in the Middle East.

Pressure on stock market due to increase in bond yield

America’s 10-year bond yield has increased to 4.46%, which has become another cause for concern for investors. Fear of rising inflation due to rising oil prices may make it difficult for the Federal Reserve to reduce interest rates. Experts believe that higher yields attract investors towards safer investment options, due to which investment in the equity market reduces.