Stocks Finish Lower as Iran War Spurs Inflation Concerns

Economic Data and Market Reactions - US weekly initial unemployment claims unexpectedly fell by 8,000 to a 9-week low of 205,000, indicating a stronger labor market than anticipated [6] - The March US Philadelphia Fed business outlook survey rose by 1.8 to a 6-month high of 18.1, surpassing expectations of a decline to 8.0 [7] - January new home sales fell by 17.6% month-over-month to a 3.25-year low of 587,000, which was weaker than the expected 722,000 [7] Energy Market Dynamics - European natural gas prices surged over 13% to a 3-year high due to reported extensive damage at Qatar's Ras Laffan gas plant, affecting 17% of its LNG export capacity [2] - Crude oil prices experienced volatility, initially rising but then falling after Israel's involvement in the Strait of Hormuz and US plans to increase oil supplies [4] - The International Energy Agency (IEA) reported that the war against Iran is disrupting 7.5% of global oil supply, with a potential cut of 8 million barrels per day this month [9] Central Bank Policies and Economic Outlook - The Bank of England (BOE), European Central Bank (ECB), and Bank of Japan (BOJ) expressed concerns about inflation risks due to the Iran conflict, leading to speculation about tighter monetary policies [3] - The ECB cut its 2026 Eurozone GDP forecast to 0.9% from 1.2% and raised its inflation forecast to 2.3% from 2.2% [14] - The BOE maintained its official bank rate at 3.75% but indicated readiness to act against inflation surges [15] Stock Market Performance - Major US stock indexes, including the S&P 500, Dow Jones, and Nasdaq 100, fell to 3.75-month lows amid concerns over inflation and central bank policies [5] - The Magnificent Seven technology stocks faced declines, with Tesla down over 3% and Nvidia down more than 1% [16] - Mining stocks also suffered, with gold and silver prices hitting 6-week lows, leading to significant losses for companies like Anglogold Ashanti and Newmont Mining [17] Company-Specific Developments - Five Below reported Q4 net sales of $1.73 billion, exceeding expectations, and forecasted 2027 net sales between $5.20 billion and $5.30 billion [22] - Rivian Automotive saw a stock increase of over 4% after Uber announced a potential investment of up to $1.25 billion [23] - Micron Technology's stock fell over 3% after forecasting full-year capital spending of $25 billion, above consensus estimates [21]