Swiss Market Index tumbles as Iran war fears deepen losses

The Swiss Market Index (SMI) faced another difficult day as selling pressure pushed shares firmly into negative territory. After a brief midday rebound, the index closed deep in the red, extending its recent decline.

The SMI had started 2026 on shaky ground, falling around 2% since January. This followed a strong 2025, when the index rose by 17.8%—outperforming global benchmarks. But the outbreak of the Iran war in early March reversed its momentum, wiping out gains after 19 record highs in late February.

Trading on the latest session remained weak from the start. A brief recovery around noon failed to hold, and the index turned negative again. Selling intensified in the final hours, dragging the SMI deeper into losses by the close. Individual stocks showed uneven performance, with none offering lasting support. Caution dominated the market, as many investors adopted a wait-and-see stance. Other European markets also struggled, adding to the uncertainty.

The SMI's persistent decline reflects ongoing volatility, with no clear signs of stabilisation. Heightened tension in global markets suggests further turbulence could lie ahead in the near term.