US Stock Analysis | Iran Situation Causes Dow to Drop Nearly 1,300 Points | Analysis: Optical Communication Stocks to Watch, and a Stock to Catch Up on

SocialAnxietyStaker · 2026-03-04T04:46:31+00:00

The capital markets have seen increased risk aversion due to the Iran situation, with the Dow Jones Industrial Average once falling 1277 points and losing the 100-day moving average. Tang Lihong suggests that U.S. stocks should remain cautious, as concerns over inflation resurgence could impact the economy. Optical communication stocks Lumentum and Coherent have recently pulled back, but the industry still holds potential. It is recommended to focus on defense communication stocks like Nokia.

SocialAnxietyStaker

2026-03-04 04:46:31

Abstract generation in progress

Capital markets are affected by the Iran situation, with risk aversion increasing. The Dow Jones Industrial Average initially dropped as much as 1,277 points, falling below 47,626 points, and temporarily losing the 100-day moving average. Gold and bond prices also saw early declines, while the US dollar strengthened.

Guangda Securities International Global Market and Foreign Exchange Strategist Tang Lihong stated in our video program “ET Market Opening Live” that it is currently advisable to observe the US stock market. “Market sentiment isn’t very good, mainly because there’s concern that US inflation might rebound again. Even Trump has said he is temporarily tolerant of rising inflation. If inflation rebounds, it will impact US economic data, and the three major indices will be affected.” She said the 200-day moving average is quite critical, currently around 46,650 points. If it remains above that, there’s no need to be overly pessimistic.

Regarding specific sectors, recently hot telecom-related stocks saw a pullback on Tuesday, with Lumentum (US: LITE) and Coherent (US: COHR) falling 11% and 6%, respectively.

However, Tang Lihong pointed out that the sharp decline in these two stocks was due to their previous rapid rise. The industry still remains worth watching. “If the conflict doesn’t end quickly, some military communications fiber optic stocks will continue to have a clear upward trend… If you want to chase the laggards, you can pay attention to Nokia (US: NOK).” Nokia’s current P/E ratio is about 27 times. Lumentum and Coherent previously received investments from NVIDIA (US: NVDA), which caused their stock prices to surge. Currently, their P/E ratios are around 63 times.

Hot Financial Talk

Middle East conflict threatens oil supply. Will oil prices break $100? Could this impact the global economy?

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes