Sentiment

• U.S. secondary-level economic statistics including construction indicators and business activity assessments will provide key signals for market sentiment early in the week. • Investors are preparing for a busier trading week with March flash PMI surveys from major economies, inflation data from Japan and UK, and U.S. consumer indicators due for release. • Market focus has shifted from traditional macro releases to monitoring oil prices, bond yields, and geopolitical developments, with these factors now setting the primary tone for equity sector rotations.

• The Dow Jones Industrial Average fell 0.4% or 203.72 points to 46,021.43 on Thursday, marking its lowest close of 2026 and closing below its 200-day moving average, with 22 of 30 components ending in negative territory. • The S&P 500 declined 0.3% to 6,606.49, reflecting its lowest close in four months, while the Nasdaq Composite slipped 0.3% to 22,090.69; all 11 sectors ended in negative territory. • Market weakness was driven by the ongoing Iran conflict and rising Treasury yields, which have climbed amid concerns about energy supply disruptions and inflation, causing traders to abandon bets on interest-rate cuts this year.

Chinese EV maker NIO rose about 4% on March 13, 2026, indicating improving investor sentiment toward global electric vehicle manufacturers amid market turbulence. Gains followed strong trading volume, paralleling US peers like Tesla's stability. This occurs as broader indices like Nasdaq slipped, underscoring EV rotation appeal. Potential next steps involve tariff-related EV supply chain updates.

The US stock market displayed divergent performance on Friday, March 13, 2026, with the S&P 500 falling to 6,658 (down 14 points), the Nasdaq dropping 100 points to 22,211, while the Dow Jones held relatively steady near 46,702 amid rising geopolitical tensions and volatile oil prices. The VIX volatility index remained elevated at 26.49, signaling sustained market uncertainty, and the S&P 500 is tracking its first three-week losing streak in approximately one year, down roughly 1.1% for the week. Institutional investors and hedge funds reduced risk positions ahead of the weekend, with analysts attributing the decline to normal profit-taking after strong gains in AI and semiconductor stocks earlier in 2026. Key market watchers noted that smart money was likely to remain in defensive positions until clarity emerged regarding the Strait of Hormuz and potential ceasefire negotiations.