Last week, US financial markets endured their fifth consecutive week of losses, driven primarily by the ongoing Iran conflict and its broad market effects. Major indices closed lower, with the Nasdaq falling 3.2% into correction territory, the S&P 500 declining 2.12%, and the Dow sliding 0.90%. Treasury yields saw slight relief, with the 10-year bond rate falling 8bps to 4.35%, though still near its highest level in more than six months.
The Iran war remained the dominant market driver, with oil prices surging over 10% during the week, intensifying inflation fears and keeping risk sentiment subdued throughout. The AI and tech sector faced additional headwinds from chip demand concerns, while growing worries about private credit funds added further uncertainty to an already fragile market environment. On the economic data front, new manufacturing data came resilient, while consumer sentiment declined, reflecting spending cutbacks among amid inflation pressures.
Looking ahead, markets will focus on the upcoming earnings season for signs of corporate resilience, though weak retail data and rising input costs raise concerns about future profitability. On a positive note, the March jobs report delivered a strong rebound, adding 178,000 jobs and pushing the unemployment rate down to 4.3%, offering a bright spot amid persistent geopolitical and inflationary headwinds.
