At the close, the Dow Jones Industrial Average fell by 289.24 points, or 0.61%, to 47,417.27 points; the Nasdaq Composite Index rose by 19.03 points, or 0.08%, to 22,716.13 points; and the S&P 500 Index declined by 5.68 points, or 0.08%, to 6,775.80 points.
According to Zhitong Finance APP, on Wednesday, investors continued to focus on the situation in the Middle East. The three major indices opened higher but closed lower, with both the S&P 500 Index and the Dow Jones Industrial Average ending the session in negative territory. This marked the second consecutive trading day of declines for the S&P 500 Index. Core inflation in the United States fell in February compared to the previous month, indicating some easing of price pressures before the outbreak of war with Iran. However, concerns triggered by the Iran conflict may amplify Americans' worries about affordability.
[US Stocks] By the close, the Dow Jones Industrial Average fell 289.24 points, or 0.61%, to 47,417.27 points; the Nasdaq Composite Index rose 19.03 points, or 0.08%, to 22,716.13 points; and the S&P 500 Index declined 5.68 points, or 0.08%, to 6,775.8 points. Energy stocks performed strongly, with Occidental Petroleum (OXY.US) rising 4%, ConocoPhillips (COP.US) and Chevron (CVX.US) gaining over 2%, and Oracle (ORCL.US) surging more than 9%. The Nasdaq China Golden Dragon Index closed down 0.77%, while Li Auto (LI.US) increased by 3%.
[European Stocks] The German DAX 30 Index fell 294.12 points, or 1.23%, to 23,641.20 points; the UK FTSE 100 Index dropped 58.98 points, or 0.57%, to 10,353.26 points; the French CAC 40 Index declined 15.55 points, or 0.19%, to 8,041.81 points; the Euro Stoxx 50 Index fell 40.72 points, or 0.70%, to 5,796.45 points; the Spanish IBEX 35 Index decreased 91.10 points, or 0.52%, to 17,353.90 points; and the Italian FTSE MIB Index fell 407.19 points, or 0.90%, to 44,794.50 points.
[Asian Stocks] The Nikkei 225 Index rose 1.43%, and the KOSPI Index gained 1.4%, while the Jakarta Composite Index fell 0.69%.
[Cryptocurrencies] Bitcoin rose 1.5% to $70,763.6, and Ethereum surged over 2.1% to $2,071.91.
[Crude Oil] Light sweet crude oil futures for April delivery on the New York Mercantile Exchange rose $3.80 to settle at $87.25 per barrel, a gain of 4.55%; Brent crude oil futures for May delivery on the London market climbed $4.18 to close at $91.98 per barrel, an increase of 4.76%.
[US Dollar Index] The US dollar index, which measures the greenback against six major currencies, rose 0.41% to close at 99.231 in late trading. In late New York trading, 1 euro was exchanged for 1.1569 US dollars, down from 1.1644 US dollars in the previous session; 1 British pound was exchanged for 1.3407 US dollars, down from 1.3460 US dollars in the prior session. 1 US dollar was exchanged for 158.89 Japanese yen, up from 157.63 yen in the previous session; 1 US dollar was exchanged for 0.7799 Swiss francs, up from 0.7770 Swiss francs; 1 US dollar was exchanged for 1.3587 Canadian dollars, up from 1.3570 Canadian dollars; and 1 US dollar was exchanged for 9.2301 Swedish kronor, up from 9.1371 Swedish kronor in the previous session.
[Metals] Spot gold closed at $5,177.17, and spot silver ended at $85.739.
[Macroeconomic News]
US February inflation stabilized as expected, but soaring energy prices are likely to keep March data elevated. The US Labor Department reported on Wednesday that the consumer price index rose 2.4% year-over-year in February. This figure remained unchanged from January and matched the expectations of surveyed economists. Excluding volatile food and energy items, core prices rose 2.5% year-over-year, also in line with forecasts. However, since the outbreak of the Iran conflict, benchmark US crude oil futures have fluctuated sharply, with an average trading price of around $82 per barrel so far this month, compared to approximately $65 per barrel in February. As a result, inflation data for March is expected to show further acceleration. RSM Chief Economist Joseph Brusuelas estimated that, according to a rule of thumb, every $10 increase in oil prices per barrel would raise the Labor Department's inflation reading by about 0.2 percentage points. Although specific calculations vary slightly among economists, most agree that oil prices will push up inflation in March. Economists also noted that last year's government shutdown led to a lack of housing cost growth data for October, artificially suppressing the current year-over-year inflation figures. However, this downward bias is expected to disappear in the April inflation report, leading to a subsequent rebound in measured inflation rates.
Trump administration officials are preparing to announce new trade investigations, potentially rebuilding tariff barriers. According to a person familiar with the matter, after the Supreme Court rejected Trump’s tariff plan, the Trump administration is set to announce a series of trade investigations on Wednesday local time. This move aims to pave the way for imposing new tariffs on imported goods. A person familiar with the matter revealed that these trade investigations will be conducted under Section 301 of the Trade Act of 1974 and will be implemented by the Office of the US Trade Representative. The first reports on the matter indicated that the investigations include issues such as digital service taxes and alleged currency manipulation. These investigations mark a significant step by the Trump administration toward rebuilding its "tariff barriers." Tariffs have been a central pillar of Trump’s economic policy. On the same day the Supreme Court rejected his tariff policy, Trump announced he would invoke another legal basis to impose a temporary 10% tariff on global goods for 150 days. He then vowed to raise the tariff baseline to 15%, although the administration has yet to implement this higher rate.
U.S. Congressional Budget Office: Federal budget deficit for fiscal year 2026 is $1.9 trillion. On March 11 local time, the U.S. Congressional Budget Office released its budget and economic outlook for 2026 to 2036. According to projections, the federal budget deficit for fiscal year 2026 will be $1.9 trillion, increasing to $3.1 trillion by 2036. In relation to the size of the economy, the deficit in 2026 will account for 5.8% of Gross Domestic Product (GDP), rising to 6.7% by 2036, higher than the average deficit level of 3.8% over the past 50 years. Rising net interest costs are the main factor driving the growth in deficits.
Average U.S. gasoline prices rise to highest level in over 21 months. On March 11 local time, the latest data from the American Automobile Association shows that the average price of gasoline in the U.S. has risen to $3.58 per gallon, reaching the highest level in over 21 months. The data indicates that gasoline prices have increased by 38 cents over the past week and by 64 cents over the past month, representing the largest weekly and monthly increases since March 2022. Current oil prices have risen by approximately 22% compared to a month ago. Meanwhile, U.S. diesel prices have risen even faster. The latest data shows that the average price of diesel has increased by 5 cents to $4.89 per gallon, with a cumulative increase of 79 cents over the past week.
IEA announces release of 400 million barrels of emergency oil reserves, largest scale in history. The International Energy Agency (IEA) stated today that it will provide the market with 400 million barrels of oil from emergency reserves. The IEA noted that the situation in the Middle East has brought 'significant and rising risks' to the oil market. These reserves will come from mandatory stockpiles held by IEA member countries. According to regulations, each member country must hold inventories equivalent to at least 90 days of the previous year's net imports. The reserves can be in the form of crude oil, refined products, or a combination of both. The latest IEA data indicates that strategic reserves in North America are primarily composed of crude oil, while European and Asian member countries hold both crude oil and refined products. By the end of 2025, the total amount of oil in public inventories held by IEA member countries will be 1.25 billion barrels, accounting for about 30% of the total oil inventories of the Organisation for Economic Co-operation and Development (OECD). This marks the sixth time that the IEA has issued an emergency reserve release directive since its establishment in 1974, and it is the largest release in history.
EU warns: Conflict may lead to inflation rate in the EU exceeding 3%. EU officials warned that if the war in the Middle East causes Brent crude oil prices to remain around $100 per barrel and gasoline prices stay high for an extended period, then this year’s inflation rate in the EU could exceed 3%. Under such circumstances, economic growth in 2026 will also be impacted. According to informed sources, EU Economic Affairs Commissioner Dombrovskis told EU finance ministers this week that economic growth would be 0.4 percentage points lower than the 1.4% forecast at the end of last year. Besides oil prices, this scenario assumes that European natural gas prices will remain around €75 per megawatt-hour for the remainder of the year. This means that the inflation rate will be 0.7-1 percentage points higher than the previously forecasted 2.1% for 2026. If inflation rises significantly, the European Central Bank might be forced to raise interest rates to address the situation. These sources indicated that the commissioner also warned that the impact of the conflict on financial markets, trade, and supply chains could bring additional negative effects to the economy.
[Stock News]
Gurman: Apple (AAPL.US) set to launch foldable iPhone with iPad-like layout. Tech reporter Gurman wrote that the foldable iPhone Apple plans to launch this fall will feature updates to the iOS operating system, enabling an iPad-like interface layout for the first time. According to informed sources, this product will include a built-in foldable display, approximately the size of an iPad mini. Additionally, it will feature an external screen comparable to the display size of a smaller iPhone. The internal display will adopt a widescreen aspect ratio, differing from the narrow-screen format of current foldable phones on the market. Sources indicate that this will become a key selling point. Apple’s design aims to enhance the appeal of the device for video viewing. At the same time, developers will find it easier to redesign iPhone applications to align more closely with the operational experience of iPad software.
Trump to invoke emergency law to provide assistance to offshore oil producer Sable Corporation (SOC.US). U.S. President Trump is preparing to invoke Cold War-era powers to pave the way for the resumption of oil production off the coast of Southern California. This is a long-shot attempt aimed at alleviating global crude oil supply shortages triggered by the war with Iran. According to an informed source, Trump is set to invoke the Defense Production Act to mobilize governmental authority, overriding state laws and streamlining the approval process for Houston-based Sable Offshore Corp., which plans to restart large-scale production at a series of offshore platforms in California. Trump faces immense political pressure to address rising fuel prices before the November midterm elections. The outcome of these elections will largely depend on Americans' attitudes toward living costs.
Meta (META.US) unveils four internally developed chips customized for artificial intelligence. Meta announced on Wednesday the release of four internally designed chips tailored for artificial intelligence-related tasks, as part of the company’s large-scale data center expansion plan. The first new chip, MTIA 300, was deployed several weeks ago, aiming to assist in training smaller-scale AI models that support Meta's core ranking and recommendation tasks. The upcoming MTIA 400, MTIA 450, and MTIA 500 chips are designed to handle more advanced generative AI-related inference tasks, such as generating images and videos based on users’ text prompts.
