Trump says "another two or three weeks of fighting," Hang Seng Tech Index plunges | Market Watch

Questioning AI · How does Trump’s Iran strategy disrupt the global technology market?

On April 1, 2026, at 9 p.m. Beijing time (April 2, 2026, at 9 a.m. Beijing time), U.S. President Trump delivered a televised speech from the White House, stating that there will be a fierce strike on Iran within two to three weeks. Previously, the market had expected the Middle East situation to ease.

After the speech, Hong Kong stocks opened lower and continued to decline, with technology stocks especially under pressure. At noon, the Hang Seng Tech Index closed down 2.21%, at 4,651 points, with a turnover of HKD 24.4 billion; the Hang Seng Index fell 1.09%, closing at 25,017 points, with a turnover of HKD 116.2 billion.

Since peaking on October 2, 2025, the Hang Seng Tech Index has been adjusting for six consecutive months, with a decline of over 30%. Industry insiders say that most tech companies have already disclosed their earnings, but there has been no significant surprise performance. Although valuations are already at relatively low levels, short-term impacts are still influenced by geopolitical factors. The support level is expected to be near the “tariff bottom” of 4,300 points from a year ago. Investors can gradually buy on dips.

According to Xinhua News Agency, Trump claimed in his speech that the conflict with Iran would achieve a “quick, decisive, and overwhelming victory,” and stated that the U.S. core strategic goal in the Iran conflict is “close to completion.” “In the next two to three weeks, we will strike them very fiercely.”

Guangda Securities International strategist Wu Lixian analyzed to Yicai that the performance of tech stocks previously announced did not bring much surprise to the market, leading to a correction. In the short term, the correlation between tech stocks and the broader market remains high. The ongoing US-Israel-Iran war will continue to cause market volatility, and tech stocks are inevitably affected. The support level to watch is around 4,300 points from April last year, which was due to Trump increasing tariffs far beyond market expectations.

Blue Water Capital Management Limited Chief Investment Officer Li Zeming said that tech stocks are affected by Middle East conflicts, which have driven oil prices higher. Rising inflation could lead to future rate hikes, and increasing interest rates will directly impact individual stock valuations, causing asset valuations to decline. Assets with higher risk and growth rates are more affected. Therefore, the Hang Seng Tech Index is more sensitive to Middle East developments than the Hang Seng Index. Industry-wise, the market is still focused on the future positioning of major tech giants, particularly whether large-scale AI investments can recoup costs and how AI applications might erode their existing businesses. As AI reshapes the industry, these factors may continue to pressure some giants’ valuations.

Wen Tianna, CEO of Boda Capital International, analyzed to Yicai that geopolitical risks remain a short-term market influence. Trump’s speech did not specify a ceasefire timetable. The continuation of the war pushes energy prices higher and intensifies global liquidity fluctuations. The Fed’s rate cut expectations have reversed, and Hong Kong stocks, as an offshore market, have already priced in some pressure. In the medium to long term, opportunities outweigh risks. The past six months of adjustment in the Hang Seng Tech Index have fully released pessimism. Supported by valuations, earnings, and policies, the second bottom is gradually approaching. With breakthroughs in domestic AI, optimized cash flow in consumer internet, and enhanced global competitiveness of the semiconductor and new energy industries, steady growth is expected in 2026. In the short term, attention should still be paid to Trump’s tariffs, regulatory variables, and Q1 earnings reports. Investors can buy quality leading stocks gradually on dips.

(This article is from Yicai)