Market Summary - Week of March 23, 2026
By Fabien Yip, Market Analyst
Published on: March 22, 2026
Summary of Last Week's Events
The Federal Reserve (Fed) maintained its policy rates between 3.5% and 3.75%, amid concerns of stagflation. The Reserve Bank of Australia (RBA) raised its rates by 25 basis points to 4.10% due to ongoing inflation and geopolitical risks in the Middle East. Meanwhile, tensions escalated with strikes affecting liquefied natural gas (LNG) capacity in Qatar.
US equities experienced a decline for the fourth consecutive week, while Hong Kong's market showed resilience despite losses in major tech stocks like Tencent and Alibaba. Gold faced its worst weekly performance in four decades, dropping significantly.
Market Highlights
US Equity Markets
The S&P 500 fell by 1.9%, breaking below its 200-day moving average for the first time since May 2025. The Nasdaq 100 and Dow Jones also saw declines of 2.0% and 2.1%, respectively. Investor anxiety was reflected in the Volatility Index (VIX), which hovered near 27.
Central Bank Actions
Chair Powell of the Fed acknowledged the challenges posed by rising oil prices but did not provide a clear outlook on future rate hikes. The RBA's rate hike was a response to persistent inflation, while the Bank of England (BoE) and European Central Bank (ECB) held their rates steady.
China's Economic Data
China's retail sales for January-February rose by 2.8% YoY, surpassing expectations, although property investment saw a significant decline. The mixed economic signals raised concerns about the sustainability of growth.
Energy Sector Strikes
Strikes in the Middle East, particularly Israel's attack on Iran's gas field, led to a significant reduction in Qatar's LNG export capacity. This geopolitical tension caused Brent crude oil prices to spike before settling lower.
Gold Market Analysis
Gold prices plummeted by 10.6%, closing just below $4,500. The decline was attributed to rising bond yields and a stronger US dollar, which diminished gold's appeal as a safe haven. The People's Bank of China continued its gold purchasing streak, but other central banks indicated potential shifts in demand.
Looking Ahead
This week, inflation data from Japan, Australia, and the UK will be closely monitored, as they hold significant implications for monetary policy. Key corporate earnings from Chinese technology firms will also be scrutinized, particularly in light of recent market reactions to AI monetization timelines.