Shares of Vanguard's flagship tech ETF slid to $684.31, down 1.7% on the day and roughly 4.5% off last week's close of $716.42, as a one-two punch of geopolitical risk and domestic policy pressure rattled the sector's biggest names.
A Standoff in the Strait of Hormuz Is Spooking Markets Far Beyond Oil Here is the briefing:
Tech's Twin Squeeze: Can VGT Weather a Shooting War and an Immigration Crackdown at the Same Time?
Shares of VGT dropped to $684.31, extending a bruising week that has wiped roughly 4.5% off the fund since last Monday's close, as the tech sector absorbs simultaneous blows from a widening Middle East conflict and a federal push to raise the cost of hiring foreign workers. The Nasdaq Composite officially entered correction territory on March 26, falling 2.4% , and NVIDIA alone slid 4.2%, with Alphabet down 3.4% and Tesla off 3.6% . For VGT holders — whose fund is loaded with those same mega-cap names — the pain is concentrated.
A Four-Week Strait Closure Is Repricing Risk Across Every Asset Class
The Strait of Hormuz has been effectively closed for almost four weeks, throwing global oil markets into chaos, as it serves as the main conduit for about 20% of the world's oil and natural gas . Crude oil has jumped to $97.66 a barrel , and the 10-year Treasury yield has climbed to roughly 4.43% . Higher energy costs threaten to reignite inflation, and rising bond yields make future profits from high-growth tech companies worth less in today's dollars — a double tax on VGT's biggest holdings.
Trump's Extended Deadline Buys Time but Not Certainty
Trump said Thursday he was delaying a deadline for Iran to reopen the strait, pausing energy-plant strikes until April 6 . But Iran has rejected Washington's 15-point plan and laid out its own conditions, including recognition of its sovereignty over the strait . Markets rallied slightly on the extension — U.S. futures rose Friday morning — but any breakdown in talks could trigger another sharp leg down in tech.
A Proposed 30%+ Hike in Foreign-Worker Wages Hits Where Tech Hurts Most
Separately, the U.S. government is proposing a major increase in wages employers must pay H-1B and other foreign workers, one that could raise entry-level salary requirements by more than 30% . The Department of Labor wants to move minimum wage thresholds from the 17th percentile to the 34th percentile for entry-level positions , and its own analysis found a roughly $19,000 gap between what comparable U.S. workers earn and what H-1B applicants are paid . For tech giants that sponsor thousands of visas annually, this rule — still months from finalization — signals structurally higher labor costs ahead.
The Bigger Picture: Inflation, Yields, and Earnings Season Loom
Market leadership has broadened sharply in 2026's first quarter; energy is up more than 35% year-to-date while technology has declined more than 5% . With April earnings approaching, investors will be watching whether tech firms can pass on rising costs or whether margin compression deepens the correction. Until the strait reopens and policy uncertainty fades, VGT remains squarely in the crosshairs.