March 26 (Reuters) - The Nasdaq Composite dropped 2.4% on Thursday, leaving the tech-heavy index down nearly 11% from its record-high close on October 29 and confirming it has been in a correction since then.
In a broad Wall Street selloff fueled by uncertainty about the U.S. and Israeli war with Iran, the Nasdaq in recent days has suffered its worst decline since April 2025, when U.S. President Donald Trump's "Liberation Day" global tariff announcement sent global markets into a tailspin.
The Nasdaq's
slide into a correction signals heightened volatility for investors and highlights the vulnerability of tech stocks, including Microsoft, Alphabet and Nvidia, that have surged in recent years due to optimism about AI technology.
With the selloff driven by fears the Middle East conflict will cripple the global economy, investors are weighing whether the downturn is a temporary dip, similar to the recovery that followed the 2025 selloff, or the start of a sustained period of risk tied to the war.
The Nasdaq fell almost 23% from its 2024 record-high close through April 7, 2025, before recovering and rallying to record highs through last October.
The index is now down nearly 8% in 2026 and at its lowest since early September 2025.
Among the biggest weights on the Nasdaq on Thursday was Meta Platforms, dropping 7.9% after two verdicts holding it liable for harm to young users sparked fears the social media giant may have to overhaul its sprawling advertising business.
(Reporting by Noel Randewich; Editing by Mark Porter, Rod Nickel)
