Market Summary - March 12, 2026

Market Overview

U.S. stock markets are experiencing significant declines, with the DJ Industrials down 601.81 points (1.27%) to 46,815, the S&P 500 down 71.43 points (1.05%) to 6,704, and the Nasdaq down 309.67 points (1.36%) to 22,406. The Russell 2000 also fell by 37.81 points (1.49%) to 2,505.

Oil Prices and Geopolitical Tensions

Oil prices have surged back to $100 per barrel for both Brent and WTI crude due to escalating tensions in the Middle East. Iranian Supreme Leader Mojtaba Khamenei has stated that the Strait of Hormuz should remain closed as a pressure tactic, threatening attacks on U.S. bases in the region. In response to the turmoil, several countries have announced releases from their Strategic Petroleum Reserves (SPR) to alleviate supply issues. Additionally, Iran has reportedly attacked foreign vessels.

Sector Performance

Private credit companies are facing challenges, with Morgan Stanley (MS) reporting significant redemptions from its North Haven Private Income Fund, limiting withdrawals to 5% of shares outstanding. Other firms in the sector, including ARES, APO, BX, OWL, and KKR, are also experiencing weakness as investor confidence wanes.

In contrast, software stocks are rebounding while chip stocks are declining. Utilities and energy sectors are leading early gains, while technology stocks are down, particularly in the optical segment. Financials and industrials are also underperforming.

Economic Data

• Weekly Jobless Claims: Fell to 213,000 from 214,000, below the consensus of 215,000.
• Housing Starts: Increased by 7.2% month-over-month to 1.487 million, exceeding the consensus of 1.340 million.
• Trade Deficit: Dropped over 25% in January to $54.5 billion, significantly lower than the consensus of $67.9 billion.

Sector Movers

Gainers

• BMBL: +33% on strong Q4 results.
• CF: +5% as fertilizer stocks gain due to supply disruptions.
• HIMX: +28% following positive news regarding its optical components.
• OXY: +3% after a double upgrade from Wells Fargo.
• WOOF: +27% on positive guidance and results.

Laggers

• AAOI: -11% due to cautious outlook on optical stocks.
• DG: -6% despite better-than-expected Q4 sales.
• GFS: -4% after a large share sale by a subsidiary.
• GIII: -13% following disappointing Q4 sales results.
• HMC: -5% after announcing a significant loss due to EV restructuring.

Conclusion

The market is currently under pressure from geopolitical tensions and economic uncertainties, particularly in the oil sector. Investors are closely monitoring developments in the Middle East and the performance of private credit funds as they navigate through these turbulent times.