The decline in U.S. stock markets continued for the fifth consecutive week, marking the longest such streak in nearly four years. Against the backdrop of war in the Middle East, a tendency to avoid riskier investments persists in the markets. As a result, the S&P 500 fell by about 1.7%, the Nasdaq by around 2.1%, and the Dow Jones by about 1.7%.

Amid the war in the Middle East, high uncertainty continues to persist in the markets. The price of Brent crude oil rose on Monday to about $116 per barrel, reflecting growing pessimism about a near-term end to the conflict and the risk of prolonged inflationary pressures. At the same time, the U.S. dollar continues to strengthen, reaching its largest monthly increase in recent months.

Following a decline in gold prices, active selling, and ongoing geopolitical uncertainty, gold rose by 3% on Friday. In the spot market, the price increased by about 2.6%, reaching approximately $4,492 per ounce.

The London stock market showed mixed dynamics on Monday: the FTSE 100 rose by about 0.6% amid gains in mining and energy company shares, while the FTSE 250 declined by about 0.5%. Despite the daily increase, both indices continue to show a downward trend on a monthly basis.

European markets also showed mixed performance last week: despite a 0.9% decline on Friday, the STOXX 600 index recorded a weekly gain of about 0.4%. Concerns have increased in the markets that the European Central Bank may raise the refinancing rate as early as April.

Last week, global equity funds recorded significant inflows, breaking a two-week trend of outflows: funds attracted about $37.8 billion, the largest weekly increase in about 2.5 months. The inflows were mainly directed to the U.S. market, about $37.2 billion, as well as to Asian markets, $5.2 billion, while Europe saw outflows of $7.5 billion. At the same time, interest in bond funds declined, with inflows totaling only $2.5 billion. Demand for safe-haven assets also weakened: about $64.8 billion was withdrawn from money market funds, and another $3.1 billion from gold and precious metals funds.

Amid the war in the Middle East, Western companies engaged in gas exports are benefiting, as high energy prices and supply disruptions increase demand for their products. Venture Global stood out in particular, with its shares rising by more than 70%.

Shares of NVIDIA, the world’s largest company, have fallen by about 20% from their peak price, with a decline of 2.2% on Friday alone. This is driven by high oil prices due to the war in the Middle East, inflation risks, expectations of potential interest rate hikes, and growing doubts about returns on investments in the AI sector. Despite this decline, the company continues to maintain strong financial performance and high growth expectations.

Shares of Meta Platforms fell by about 7%, reaching a roughly 10-month low after court rulings were issued against the company. Despite this pressure, the company continues to invest in artificial intelligence, although investors are reassessing risks related to future profitability.

Among companies with a market capitalization of at least $10 billion, the largest gain last week was recorded by meat production and processing company JBS N.V. (JBS). Its shares rose by 19.51% over the week (price per share: $17.03). It was followed by alcoholic beverage producer Brown-Forman Corporation (BF.B), with a 19.25% increase ($27.19). The top three is completed by lithium and chemical producer Sociedad Química y Minera de Chile S.A. (SQM), with a 16.22% increase ($82.70).

The trio of large-cap companies with the biggest losses last week is led by financial technology and crypto infrastructure company Circle Internet Group, Inc. (CRCL), whose shares fell by 25.68% over the week ($93.66). It is followed by cosmetics and personal care company The Estée Lauder Companies Inc. (EL), with a 21.75% decline ($67.23). The top three is completed by crypto exchange and digital asset trading platform Coinbase Global, Inc. (COIN), with an 18.41% decline ($161.14).

In the United States, the consumer confidence index fell in March to about 53.3, reaching a three-month low, significantly below February’s level of 56.6. At the same time, one-year inflation expectations rose to 3.8%. The decline in the index is driven by a more than 50% increase in oil prices amid the war in the Middle East, rising gasoline prices (about $3.98 per gallon), as well as falling stock markets, all of which together intensify inflation concerns and economic uncertainty.

In major Eurozone economies, consumer confidence continued to deteriorate: in Germany, the indicator reached a two-year low, while France and Italy also recorded worsening sentiment. The decline is driven by rising fuel prices amid the war in the Middle East, as well as possible increases in food prices and overall economic uncertainty. At the same time, markets expect that the European Central Bank may raise the refinancing rate, which could further pressure economic activity. Although the economy is still showing moderate growth, economists predict that if the situation does not stabilize, consumer confidence and economic prospects may deteriorate further.

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