Market Review: March 12, 2026
Closing Recap
On Thursday, March 12, 2026, US equities experienced a significant decline, with the major indices closing lower:
- DJ Industrials: -739.66 points (-1.56%) at 46,677
- S&P 500: -103.24 points (-1.52%) at 6,672
- Nasdaq: -404.16 points (-1.78%) at 22,311
- Russell 2000: -53.88 points (-2.12%) at 2,489
Market Overview
The decline in US equities was attributed to a lack of positive news, with the ongoing conflict in Iran exacerbating concerns over oil supply disruptions. Oil prices surged as fears of infrastructure attacks and supply curtailments grew. Economic data, including the Consumer Price Index (CPI), did not provide sufficient support to boost stock prices. Investor sentiment worsened, with the bull-bear spread dropping to -14.5%, indicating increased bearish sentiment among investors.
Sector Performance
Market breadth favored decliners, with a ratio of 7:2 against advancers. Small-cap stocks underperformed, with the IWM ETF down 2.28% compared to SPY and QQQ, which fell 1.15% and 1.42%, respectively. Among sector ETFs, Utilities, Energy, and Consumer Staples were the only sectors to gain, while Consumer Discretionary, Technology, and Industrials led the declines.
Economic Data Highlights
Key economic indicators released included:
- Weekly Jobless Claims: Fell to 213,000, slightly below expectations.
- January Housing Starts: Increased by 7.2% month-over-month, surpassing consensus estimates.
- US Trade Deficit: Dropped significantly to $54.5 billion, a decrease of over 25% from previous months.
Commodities and Currencies
In commodities, gold prices fell as investors became less optimistic about potential Fed rate cuts, settling at $5,125.80 per ounce. Crude oil prices rose sharply due to geopolitical tensions, with WTI crude futures closing at $95.73 per barrel, a 9.72% increase. The US dollar strengthened against the euro, reflecting its safe-haven appeal amid rising energy prices.
Sector News Breakdown
Retail and Consumer Staples
Discount retailer DG reported better-than-expected Q4 comp sales but saw its shares decline due to a conservative sales forecast. Apparel retailer GIII faced a significant drop in sales and swung to a net loss.
Energy Sector
OXY received a double upgrade to overweight from Wells Fargo, while Goldman Sachs raised crack spread estimates for refiners, indicating a positive outlook for the sector.
Biotech and Pharma
LLY issued a warning regarding safety risks associated with a compounded version of its weight-loss drug, while CVS was upgraded to Outperform due to its potential for stable earnings.
Conclusion
The market's decline on March 12, 2026, was driven by geopolitical tensions, particularly the Iran conflict, and a lack of positive economic indicators. Investors are closely monitoring upcoming economic data, particularly the PCE report, as sentiment remains cautious.