S&P 500 extends drop to 0.5%; Nasdaq 100 at session low

The S&P 500 extended its decline to 0.5% in afternoon trading on March 13, 2026, with the Nasdaq 100 hitting a session low as global markets remained sensitive to geopolitical tensions and shifting investor sentiment. The benchmark index's move follows a period of heightened volatility, with the S&P 500 previously recording a 1.1% drop in early March amid renewed concerns over oil prices and regional conflicts. The Nasdaq Composite, heavily weighted toward technology stocks, has underperformed in recent sessions, reflecting profit-taking after a strong 22.2% gain in 2025.

Oil prices climbed to $100 per barrel earlier in the month, driven by persistent uncertainties surrounding the war with Iran, exacerbating fears of inflationary pressures and dampening risk appetite. Meanwhile, the Dow Jones Industrial Average fell 1.2% at one point, aligning with broader equity declines. Investors are also digesting the Federal Reserve's December 2025 policy meeting minutes, slated for release later in the week, which may provide clues about the central bank's stance on interest rates in 2026.

Despite a robust 17.7% rise for the S&P 500 in 2025, market participants remain cautious ahead of the year's end, with traditional seasonal patterns like the "Santa Claus rally" offering limited reassurance amid ongoing macroeconomic uncertainties. Trading volumes and sector rotations suggest a shift toward defensive positioning, though analysts caution that volatility is likely to persist until key risks—geopolitical and inflationary—show signs of abating.