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

A decline of over 30% in half a year.

At 9:00 p.m. U.S. Eastern Time on April 1, 2026 (9:00 a.m. Beijing Time on April 2), 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 midday, 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 exceeding 30%. Industry insiders say that most technology 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 from geopolitical factors remain. The support level is expected to be near the “tariff bottom” of 4,300 points from a year ago, and investors can gradually buy on dips.

According to Xinhua News Agency, Trump claimed in his speech that the war 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 launch extremely fierce strikes against them.”

Guangda Securities International strategist Wu Lixian told Yicai that the performance of tech stocks previously announced did not bring much bright spot to the market, leading to a sector correction. In the short term, the correlation between tech stocks and the broader market remains high. The ongoing U.S.-Iran conflict 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 the Middle East war, which has driven oil prices higher. Rising inflation could lead to the risk of future rate hikes, and increasing interest rates will directly impact individual stock valuations, causing asset valuations to decline across the board. 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 remains focused on the future positioning of major tech giants: one is whether large-scale AI investments can recoup costs, and the other is AI’s potential to erode their existing businesses. As AI reshapes the industry, these factors may continue to pressure some giants’ valuations.

Bowda Capital International CEO Wen Tianna analyzed for Yicai that geopolitical risks remain a short-term market influence. Trump’s speech did not specify a ceasefire timetable, and the war’s continuation has pushed energy prices higher and intensified global liquidity fluctuations. The Fed’s rate cut expectations have reversed. As an offshore market, Hong Kong stocks have already priced in some of this 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. Breakthroughs in domestic AI development, optimized cash flow in consumer internet, and increased global competitiveness in semiconductors and new energy industries will drive steady growth in 2026. In the short term, attention should still be paid to Trump’s tariffs and regulatory variables, as well as first-quarter earnings reports. Investors can gradually allocate to high-quality leading stocks on dips.