Weekly Market Update

US stocks have been volatile this week because of ongoing tensions in the Middle East and their potential impact on oil prices. The conflict has driven up energy costs, raising concerns about inflation and its effect on interest rates. Market sentiment remains uncertain as investors weigh the prospects of a prolonged conflict.

MARKET PERFORMANCE SNAPSHOT:
- S&P 500: Down 3.5% because of surging oil prices and uncertainty surrounding the Middle East conflict.
- Dow Jones: Down 4.2% because of concerns over inflation and potential interest rate hikes.
- Nasdaq: Down 4.7% because of tech sector losses amid rising energy costs and recession fears.

KEY DRIVERS OF THE WEEK:
- Economic Data: Wholesale inflation accelerated 0.7% month-over-month in February, before the effects of the Middle East conflict gripped markets this month.
- Earnings: Investors are parsing the information out of Nvidia’s (NVDA) highly expected GTC event and Micron's (MU) strong earnings.
- Federal Reserve / Interest Rates: The Fed voted to hold rates steady, while Chair Jerome Powell complained about progress on inflation. Expectations for near-term rate cuts have eased, and markets are pricing in 99% odds of rates remaining at current levels.
- Global or Geopolitical Events: Ongoing tensions in the Middle East drove up energy costs and raised concerns about inflation and its effect on interest rates.
- Sector Trends: Tech sector losses amid rising energy costs and recession fears.

SECTOR HIGHLIGHTS:
- Tech: Down because of Nvidia’s (NVDA) shares rose alongside the broader market after the chipmaker's highly anticipated GTC event. Jensen Huang, the CEO of the global chip behemoth, announced a slew of deals and said the company sees $1 trillion in chip sales through the end of 2027.
- Energy: Up due to surging oil prices as Brent crude futures (BZ=F) rose to $104 a barrel after Iran said some of its energy facilities had come under attack. West Texas Intermediate crude futures (CL=F) also turned higher, trading near $98.

NOTABLE COMPANY MOVES:
- Nvidia’s (NVDA): Shares rose alongside the broader market after the chipmaker's highly anticipated GTC event. Jensen Huang, the CEO of the global chip behemoth, announced a slew of deals and said the company sees $1 trillion in chip sales through the end of 2027.
- Micron (MU) stock dropped as the chipmaker's AI spending plans overshadowed strong earnings.
- Alibaba (BABA) stock slid after a 67% plunge in quarterly profit underscored the need for returns on its AI investments.

LOOKING AHEAD:
- Upcoming economic report: None mentioned
- Upcoming earnings:
- Fed meeting or commentary: This week's Federal Reserve meeting will be the next policy decision of the year.
- Macro trend to watch: The major US stock gauges declined for the fourth straight week, with the Dow and Nasdaq Composite both nearing correction territory.

FINAL TAKEAWAY:
This was a tumultuous week on Wall Street as investors grappled with rising oil prices, concerns over inflation, and potential interest rate hikes. The ongoing tensions in the Middle East have driven up energy costs and cast a shadow over market sentiment. Despite some signs of hope for a deescalation of the conflict, markets remain uncertain about the future direction of oil prices and its impact on the global economy.