S&P 500 heads for worst quarter since 2022 as Iran war, rate worries rattle Wall Street

The broad U.S. equity index is closing out its worst quarter in four years as investors retreated amid inflation fears, uncertainty over the Iran war and concerns about the economic impact of AI. The mix of inflation-driven macro risk and geopolitical uncertainty has prompted risk-off positioning and is likely to sustain volatility and downside pressure on equities near term.

Analysis

The broad U.S. equity index is closing out its worst quarter in four years as investors retreated amid inflation fears, uncertainty over the Iran war and concerns about the economic impact of AI. The mix of inflation-driven macro risk and geopolitical uncertainty has prompted risk-off positioning and is likely to sustain volatility and downside pressure on equities near term.