NEW YORK, March 23, 2026, 10:42 EDT
Nasdaq Composite climbed Monday, tracking a sharp drop in oil prices after President Donald Trump announced a delay in U.S. strikes on Iranian power plants. Shares of Merlin Inc., fresh to the public markets, advanced as the company was added to the index.
The tech-heavy index slid 2.01% Friday, settling at 21,647.61—now trailing its October 29 record close by almost 10%. Surging crude prices have stoked concerns the Federal Reserve might stick with higher rates for longer than hoped. That sharp drop sealed a fourth straight weekly loss for major U.S. indexes, underlining just how fast market mood can reverse on an oil spike.
The Nasdaq climbed 1.77% to 22,033.90 as of 9:40 a.m. ET. Gains for the S&P 500 reached 1.52%, and the Dow picked up 1.66%. This bounce followed the Fed’s recent decision to hold interest rates at 3.50%-3.75%, revise its inflation forecast higher, and stick with projections for just one rate cut in 2024.
Chicago Fed President Austan Goolsbee on Monday put inflation above employment on the priority list, saying it needed to come “a little ahead.” Governor Stephen Miran, though, wasn’t ready to call it on the oil shock, sticking with his preference for slow rate cuts. Traders found themselves juggling optimism from falling crude prices with worries that another jump in fuel could push the Fed back to a tougher line. Reuters
Brent crude tumbled as much as 14.5% before paring some of the drop, last seen down 9.72% at $101.28 a barrel. U.S. crude was weaker too, slipping nearly 8.9% to $89.49. Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley, described the mood as the market waking up to “potentially good news” from the Middle East, but pointed out that traders still needed to see real momentum for any relief rally to stick. Reuters
Big tech took the brunt on Friday. Nvidia and Tesla dropped over 3% apiece. Microsoft shed close to 2% as traders adjusted for persistent inflation and dialed back hopes for near-term policy relief.
Monday saw a sharp reversal. American and United both jumped over 4.5%, while JPMorgan tacked on close to 2%. The VIX, which tracks volatility, slipped from its recent two-week peak. Energy lagged—the lone S&P 500 sector still in the red, with crude prices slipping back.
Merlin grabbed a spot on the radar after Yahoo Finance noted its addition to the Nasdaq Composite. By 10:26 a.m. EDT, the stock had gained $1.25 to reach $9.25. According to Nasdaq, the Composite tracks over 2,500 stocks, gets updated each day, and may include a company once it’s been trading on the exchange for a single day.
Boston-based aerospace and defense software outfit Merlin started trading March 17, following its completed merger with Inflection Point Acquisition Corp. IV, a SPAC. The transaction brought in roughly $200 million in gross proceeds and set Merlin’s pre-money valuation at $800 million. CEO Matt George described the company as “rethinking what flight can be.” GlobeNewswire
The relief rally might not last. Iranian outlets challenged Trump’s claim about direct negotiations, while Israel reported ongoing strikes. Goldman Sachs bumped its 2026 Brent target up to $85 a barrel, but also signaled Brent could hit an average of $110 in March and April if disruptions at the Strait of Hormuz persist—a chokepoint for roughly 20% of global oil and LNG shipments.
Right now, oil prices, commentary from Fed officials, fresh business activity data, and the latest consumer sentiment numbers are in focus as traders look for signs if Monday’s rebound actually marks the beginning of a more sustainable move up—or if it’s just another jump on the news cycle.
Related articles: NASDAQ:UAL
