On March 15, 2023, the S&P 500 Index fell by 0.66%, the Dow Jones Industrial Average decreased by 0.57%, and the Nasdaq 100 Index dropped by 0.80%, reaching 3.75-month lows. This downturn is largely attributed to rising energy prices, with European natural gas prices increasing over 24% to a three-year high following significant damage reported at Qatar’s Ras Laffan gas plant, the world’s largest natural gas export facility.
In the U.S., weekly initial unemployment claims fell by 8,000 to 205,000, contradicting predictions of an increase. Meanwhile, the March Philadelphia Fed business outlook survey unexpectedly rose to 18.1, its highest in six months. On the bond market front, the 10-year T-note yield surged to a 6.75-month high of 4.32%, driven by inflation expectations stemming from geopolitical tensions in the Middle East.
Global stock markets also exhibited declines, with the Euro Stoxx 50 falling 2.37%, China’s Shanghai Composite decreasing by 1.39%, and Japan’s Nikkei 225 dropping by 3.38%. The war in the Middle East poses potential risks to economic growth and higher inflation in both the Eurozone and the U.S.
