US stocks slide as Trump calls for war escalation

US President Donald Trump’s address to the nation on Wednesday night did the opposite of what many hoped. He called for bombing Iran “back to the stone age” in a 21:00 EST address that failed to offer the de-escalatory language that many observers expected.

In response, the NASDAQ Composite (IXIC) gave up more than 2% on Thursday morning, while the S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) both swung 1.5% lower.

The turn has ended the two-day rally that came in response to news that Trump was looking for an off-ramp to the month-old conflict. Between Tuesday and Wednesday, the NASDAQ Composite gained 5%.

Trump returns to warpath, introduces new tariffs

The market has returned to its risk-off sentiment following Trump’s address to the nation, the first major speech since Israel and the US launched their war on Iran on February 28.

Crude Oil futures have exploded 11% higher on Thursday with WTI reached $111.20. Long-dated US Treasuries also saw yields gain, while Gold dropped over 3%.

The President doubled down on tariffs as well as his bombing campaign, which is largely focused on destroying civilian targets like pharmaceutical factories and infrastructure. Additionally, the President failed to offer a strategy for reopening the Strait of Hormuz, the primary barrier to lower Oil prices.

The Wall Street Journal reports that finished products made with imported steel and aluminum would be tariffed at 25%, which would apply to the entire value of a finished product rather than the earlier tariff that only applied to the value of steel and aluminum used in the product.

The existing 50% tariff will remain on products made almost entirely of steel and aluminum.

NASDAQ Composite dives on spike in Oil price

In response to the spike in Oil prices in the US, the highest level since March 8, growth stocks sold off en masse. As its heavily weighted toward tech and growth stocks, the NASDAQ Composite fared worse than other major indexes.

The IXIC gapped down below the close from Tuesday in a sign that new short-term lows are on the horizon. However, it may take some time for the index to break below Monday’s range low of 20,690 since the two-day rally this week was so fierce.

The distance between the 50-day Simple Moving Average (SMA) and the 200-day (SMA) is narrowing quickly. If it should crossover, the dreaded Death Cross will be in motion, a technical signal of impending capitulation. On the downside, bulls will look for entry at the 20,500 and 19,350 levels, where the index found stability in the summer of 2025. Below that lies the 18,000-18,500 gap from the tariff turmoil in April and May of last year.