Global stock markets came under heavy pressure, with major U.S. indices dropping to their lowest levels since the escalation of geopolitical tensions in the Middle East. Investors remain cautious, reacting to fresh economic data and signals from the Federal Reserve.
After the latest trading session, the Dow Jones Industrial Average fell by 768.11 points, or 1.63%, closing at 46,225.15. The index slipped below its 200-day moving average and is now down more than 5% for the month, putting it on track for its worst monthly performance since 2022.
Meanwhile, the S&P 500 declined by 1.36% to 6,624.70, while the Nasdaq Composite dropped 1.46% to finish at 22,152.42.
The Federal Reserve kept its benchmark interest rate unchanged in the range of 3.5% to 3.75%, noting that the implications of developments in the Middle East for the U.S. economy remain uncertain.
Fed Chair Jerome Powell said that some progress on inflation is expected, though at a slower pace than previously anticipated.
At the same time, the U.S. Producer Price Index (PPI), which tracks changes in wholesale prices, rose by 0.7% in February. This has further fueled concerns that inflationary pressures could intensify, especially amid rising oil prices.
Analysts warn that the combination of geopolitical risks and persistent inflation could push the economy toward stagflation—a scenario of slow growth and high prices that is typically unfavorable for financial markets.
