US equities fell for a third straight week as Middle East tensions and oil price volatility continued to weigh on markets. Investors balanced the risk of supply disruptions through the Strait of Hormuz against occasional signs of easing tensions. Uncertainty around private credit markets and trade policy also pressured sentiment. Among major indexes, the S&P MidCap 400 (-2.03%) and Dow (-1.99%) saw the largest declines, while the Nasdaq (-1.26%) performed relatively better but still ended lower.
Inflation data were mixed but pointed to ongoing price pressures. Core CPI rose 0.2% m/m in February, keeping the annual rate at 2.5%. The Fed’s preferred inflation measure, core PCE, increased 0.4% m/m in January, with the annual rate rising to 3.1% – the highest level since early 2024. Meanwhile, economic growth slowed, with Q4 GDP revised down to 0.7% from 1.4%, reflecting weaker consumer spending, exports, and investment. Treasury yields moved higher during the week as inflation concerns and geopolitical risks remained in focus.
European equities also declined modestly. The STOXX Europe 600 fell 0.47% as investors assessed the duration of the Middle East conflict and its impact on energy prices and growth. Germany’s DAX dropped 0.61% and France’s CAC 40 fell 1.03%, while Italy’s FTSE MIB rose 0.37%. The UK’s FTSE 100 edged slightly lower, down 0.23%.
