The week of March 17–24 was marked by key events that kept financial markets on alert. The Federal Reserve’s decision, the sharp drop in the tech sector, and global energy tensions combined to create uncertainty among investors.

Weekly Summary

• The Federal Reserve keeps interest rates at 4.5%.

• Sharp decline in tech companies' valuations and their founders' net worth.

• Volatility in the energy sector following new sanctions on Russia.

The Federal Reserve keeps interest rates at 4.5%

The Federal Open Market Committee (FOMC) maintained the federal funds rate within the range of 4.25% to 4.50%, marking a pause after three consecutive cuts since September 2024. The Fed maintained a cautious tone, emphasizing persistent economic uncertainty.

Market Impact:

• A short-term signal of stability, without confirming future rate cuts.

• Mixed reactions in equity markets. Investors shifting focus to upcoming macroeconomic data.

Sharp decline in tech company valuations and their founders' net worth

Companies such as Tesla, Meta, and Amazon saw significant losses during the week, which led to a notable drop in the wealth of their key shareholders. Elon Musk, Jeff Bezos, and others lost billions in personal net worth.

Market Impact:

• The Nasdaq dropped over 2% during the week.

• Capital shifted toward more defensive sectors such as energy and healthcare.

• Increased volatility in the tech sector.

Volatility in the energy sector following new sanctions on Russia

The United States imposed new financial sanctions on Russian banks involved in oil and gas trade. These measures created uncertainty in energy markets and drove up the price of Brent crude.

Market Consequences:

• Brent crude prices rose more than 3%.

• Shares of U.S. energy companies climbed.

• Increased perception of global geopolitical risk.

Key Indicators

• S&P 500: 📉 1.5%

• Nasdaq: 📉 2.3%

• Dow Jones: 📉 1.2%

• Brent Crude Oil: 📈 3.0%

Final Analysis

Financial markets remain in a cautious stance, driven by mixed monetary signals, a correction in the tech sector, and geopolitical tensions affecting energy prices. Investors are advised to maintain flexibility and closely monitor upcoming economic data and international developments.

Sources: The Wall Street Journal, Bloomberg, Reuters.

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