Wall Street Falls, Energy Inflation Risks Regain Strength
US stocks weakened on Thursday (March 26), paring some of this week's rally as investors assessed the escalation of attacks in the Middle East and the potential inflationary impact of the conflict. The S&P 500 and Dow Jones Industrial Average fell about 0.8%, while the Nasdaq Composite Index fell more modestly, reflecting a shift back to risk-off mode.
Pressure increased after Tehran rejected US calls for ceasefire talks, dimming hopes for an imminent end to the war. This rejection reinforced the view that energy exports through the Strait of Hormuz risk remaining disrupted, maintaining the oil risk premium and fueling concerns about cost inflation.
In the bond market, Treasury yields rose again as energy prices strengthened, pressuring sectors sensitive to funding costs and large-cap technology stocks. Sentiment toward the AI theme also weakened as investors reduced speculative positions amid macroeconomic uncertainty.
Mega-cap stocks also declined, with Tesla, Microsoft, Amazon, and MetaTrader all falling around 1.5%–3%. This movement indicates a correction spreading to stocks that had previously been supporting the index.
On the corporate side, Jefferies rose slightly despite highlighting pressure from private credit in its financial report. Meanwhile, Equitable Holdings and Corbridge rose around 2% after announcing plans for a stock-based merger with a combined valuation of approximately US$22 billion, becoming one of the bright spots amidst the broader market weakness.
Source: newsmaker.id
