The Nasdaq nearly entered correction due to oil prices, Middle East tensions, inflation, and AI worries, but rebounded late.

The Nasdaq is near a correction, down nearly 10% from its peak, due to rising oil prices, Middle East tensions including conflict with Iran, inflation fears, and AI-related concerns. Although it briefly dipped into correction territory, a late rally prevented an official decline. Historically, such drops occur every 1–2 years and often lead to quick recoveries, with markets typically rebounding within four months. Past corrections, including one in 2025 tied to tariffs, were followed by strong rebounds. However, current conditions—marked by higher energy costs, a weakening labor market, and reduced confidence in policy reversals—make a swift recovery less certain.