S&P 500 sees worst quarter since 2022 as war and rates weigh

S&P 500 is set for a 7% quarterly drop as the Iran war and inflation weigh on markets. Tech stocks fell while rising bond yields added to investor jitters.

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The United States equity market is closing out its most challenging quarter since 2022, as a combination of geopolitical conflict, persistent inflation, and cooling enthusiasm for artificial intelligence weighs on investor sentiment. The benchmark S&P 500 is currently on track to lose approximately 7% for the first quarter of 2026, a performance reminiscent of the market turbulence seen during the onset of the conflict between Russia and Ukraine.

A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid
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