US stocks fall as Middle East tensions boost oil prices despite softer inflation data easing rate hike fears
US equity markets declined this week due to renewed conflict in the Middle East, which caused oil prices to surge amid concerns over supply disruptions through the Strait of Hormuz. However, cooler-than-expected inflation data (CPI and PPI) helped limit broader market losses by reducing fears of an imminent Federal Reserve rate hike. The S&P 500 dropped 1.5%, and the Nasdaq 100 fell 4.2%, with tech and AI-related stocks under pressure. Real estate investment trusts (REITs) outperformed, supported by strong earnings and raised guidance from Prologis, reflecting positive industrial real estate fundamentals in the US. Going forward, markets remain cautious as rising oil prices could complicate the Fed's policy outlook despite softer inflation readings.
US equity markets declined this week due to renewed conflict in the Middle East, which caused oil prices to surge amid concerns over supply disruptions through the Strait of Hormuz. However, cooler-than-expected inflation data (CPI and PPI) helped limit broader market losses by reducing fears of an imminent Federal Reserve rate hike. The S&P 500 dropped 1.5%, and the Nasdaq 100 fell 4.2%, with tech and AI-related stocks under pressure. Real estate investment trusts (REITs) outperformed, supported by strong earnings and raised guidance from Prologis, reflecting positive industrial real estate fundamentals in the US. Going forward, markets remain cautious as rising oil prices could complicate the Fed's policy outlook despite softer inflation readings.
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