Major U.S. stock indexes fell for the third consecutive week, driven by escalating Middle East tensions and resulting oil market volatility. Additional pressures from private credit market strains and evolving trade policies further eroded investor sentiment.
European indexes declined as investors fixated on the Middle East conflict's duration, energy price trends, and potential regional growth impacts. ECB President noted Europe is better equipped to weather this shock than in past crises, though uncertainty and volatility persist.
Japan's stocks dropped amid risks to oil supply from the Strait of Hormuz, fueling crude price swings. Chinese markets showed mixed results, with February's consumer price index rising year-over-year and core inflation hitting its highest level since March 2019.
Surging oil prices have lifted short-term inflation expectations, curbing bets on Federal Reserve rate cuts in 2026. Futures now suggest just a slim chance of one 25-basis-point cut, down from earlier pricing of about 50 basis points.
| Asset Name | Weekly Closing Level | Weekly % Return |
|---|---|---|
| S&P 500 | 6,632.19 | -1.60% |
| DJIA (Dow Jones) | 46,558.47 | -1.99% |
| Nasdaq Composite | 22,105.36 | -1.26% |
| Nikkei 225 | 53,819.61 | 3.11% |
| FTSE 100 | 10,261.15 | -0.23% |
| Shanghai Composite | 4,095.45 | -0.70% |
| Sensex (BSE) | 74,563.92 | -5.52% |
| ADX Index (UAE) | 9,635.57 | -2.70% |
| Gold | 5,061.70 | -1.88% |
| Brent Oil (USD/bbl) | 103.14 | 11.27% |
Looking ahead, while geopolitical risks persist—a deeper, prolonged conflict could significantly impact economies and markets; however, history shows these shocks tend to be short-lived. For long-term investors, staying invested through disruptions has proven optimal, and we expect the same here. We recommend targeting well-diversified portfolios to spread risk. Recent volatility could even be an opportunity to invest in areas in which you are underexposed or rebalance portfolios at cheaper valuations.
Let our investment specialists help you tailor your portfolio for what’s ahead.
Disclaimer
This commentary is provided for informational purposes only and does not constitute investment advice. For detailed insights, contact our investment team.