Market U.S. stock indices closed lower on March 14, with the S&P 500 falling for the third consecutive week and hitting a new low for the year. Top 20 U.S. stocks by trading volume on March 14: As founders depart, Elon Musk states that xAI requires a complete rebuild. Popular U.S.-listed Chinese stocks were mixed: NIO Inc. rose 5.50%, while Pony.ai fell 6.92%. Oil prices closed above $100 per barrel for the second consecutive day, as markets disregarded U.S. efforts to lower prices. European stock markets declined for the second week in a row, impacted by the Iran conflict.
Macro The U.S. President reportedly rejected a proposal from the Russian President to transport Iranian enriched uranium to Russia. Former President Trump stated that the U.S. military will launch "intensive airstrikes" on Iran next week, while refusing to discuss "island seizure." U.S. officials confirmed that additional Marines and naval vessels are being deployed to the Middle East. The U.S. Commerce Department withdrew its proposed rules on AI chip exports. A U.S. judge dismissed subpoenas against the Federal Reserve Board in a case involving Jerome Powell; the Justice Department plans to appeal. The U.S. eased restrictions on the use of ethylene oxide, a carcinogenic gas used in cleaning medical devices. The U.S. announced a reward of up to $10 million for information on Iranian leaders. The U.S. Trade Representative urged companies to distribute tariff refunds to employees as bonuses. Iranian leaders adopted a tough stance, responding to Trump with strong rhetoric and public demonstrations. The Iranian President stated that he is obliged to fully follow the directives of the Supreme Leader. Reports indicate Iran is considering terms for allowing oil passage through the Strait of Hormuz. Iran launched the 46th round of its "True Promise-4" military operations. Trilateral talks involving Ukraine, the U.S., and Russia were postponed again, with President Zelensky citing disagreements over the venue. Canada announced it will release 23.6 million barrels from its petroleum reserves. Reports suggested France and Italy began negotiations with Iran regarding Strait of Hormuz passage; Italy denied these claims. Cuba confirmed talks with the U.S. to address bilateral differences.
Corporate Elon Musk stated that xAI needs a "total rebuild," as co-founders continue to leave and SpaceX nears its IPO. Formula 1 plans to cancel two races scheduled in Bahrain and Saudi Arabia. JPMorgan turned bullish on the U.S. dollar for the first time in a year, citing "prudent insurance." Petrobras announced it will raise diesel prices due to oil market shocks. Mercedes-Benz is reportedly in discussions with Geely to deepen cooperation and enhance R&D capabilities in China. Barclays delayed its expectation for the next Fed rate cut to September.
Commentary U.S. mortgage rates surged to their highest level since last September, impacting the spring housing market. Commodities summary: Brent crude closed above $100 again, aluminum prices retreated, and gold declined. Hedge fund bullish sentiment on Brent crude reached a six-year high. The Iran conflict is putting pressure on refineries, with California gasoline prices expected to exceed $10 per gallon. JPMorgan warned that a tanker embargo could reduce global crude supply by 12 million barrels per day. A review of the largest historical global oil supply disruptions. The U.S. economy under soaring oil prices due to the Iran conflict: aviation, agriculture, and housing face pressure. U.S. consumer confidence fell while inflation expectations remained elevated. Saudi Arabia accelerated efforts to reroute crude exports via the Red Sea, with very large crude carriers gathering to load.
Comments