Nasdaq 100 Drops 8% Amid Geopolitical Tensions and Credit Market Risks

The Nasdaq 100 Index has retreated by more than 8% from its record highs reached in 2026, signaling a significant correction phase for tech equities. Market sentiment is currently being weighed down by escalating concerns over the US-Iran conflict and emerging instabilities within the private credit industry. Despite the broader index downturn, Western Digital (WDC) has emerged as the top performer this year, surging by 59% on the back of AI-related hardware demand. Conversely, Micron (MU) shares have tumbled nearly 20% from their recent peak, struggling to maintain momentum despite robust demand for memory components. This divergence highlights a complex environment where geopolitical risks are clashing with the ongoing structural growth in AI infrastructure. Investors remain cautious as the combination of military conflict and credit sector fragility creates a challenging backdrop for the remainder of the year.