NASDAQ Records Worst Month Since 2025 Amid Private Credit and Iran War Fears

Key Facts

1The NASDAQ fell 3% in February 2026, marking its worst monthly performance since March 2025.

2Private credit markets emerged as a new concern for investors during February.

3There are growing fears of a war in Iran impacting market sentiment.

The NASDAQ index recorded a significant 3% decline in February 2026, marking its sharpest monthly drop since March 2025. This downturn was fueled by a combination of technical sell signals and emerging instability within the private credit markets. Investors are increasingly concerned that systemic risks in credit could spill over into broader equity markets and impact overall liquidity. Adding to the volatility, escalating geopolitical tensions and fears of a potential conflict in Iran have severely dampened market sentiment. Analysts suggest that these factors are driving a "risk-off" environment, prompting a rotation out of high-growth tech stocks. Consequently, major ETFs such as QQQ and SPY are facing increased downward pressure as geopolitical and financial uncertainty persists.