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Markets Bearish

S&P 500 Posts Worst First Quarter Since 2022 Amid Geopolitical and Market Turmoil

Mar 31, 2026 23:05 UTC

The S&P 500 ended the first quarter of 2026 with significant losses despite a late-day rally, marking its worst performance since 2022. Concerns over the Iran conflict, private-credit market issues, and the AI 'scare trade' contributed to the market's volatility.

  • The S&P 500 had its worst first quarter since 2022 in 2026.
  • A late-day rally failed to prevent the index from posting significant losses.
  • The Iran conflict, private-credit concerns, and the AI 'scare trade' were key factors in the market's volatility.
  • Investors are preparing for continued stock-market turbulence in the coming months.
  • The market's performance highlights the impact of geopolitical and financial uncertainties on investor sentiment.

The S&P 500 closed the first quarter of 2026 with a notable decline, despite a late-day surge in stock prices. The index recorded its worst first-quarter performance since 2022, as investors grappled with a combination of geopolitical tensions and market-specific concerns. The Iran conflict, worries about the private-credit market, and the AI 'scare trade' were key factors that contributed to the market's instability in March. While the final day of the quarter saw a rally, it was insufficient to offset the broader losses accumulated over the three months. The market's volatility reflects the uncertainty surrounding global events and the shifting dynamics in the financial landscape. Investors are now bracing for continued turbulence as they navigate the complex interplay of geopolitical risks and evolving market conditions.

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