Global stock markets extended their losing streak this week, with Wall Street indices marking their fourth consecutive week of declines amid rising oil prices and growing concerns over potential interest rate hikes. Major stock indices across the United States, Europe, and Asia fell as investors grappled with inflation fears and geopolitical uncertainties affecting energy supplies.
The Dow Jones Industrial Average led Wall Street losses, dropping 2.11 percent over the five trading days, according to market data. The Nasdaq Composite and S&P 500 followed closely, declining 2.07 percent and 1.9 percent respectively during the same period.
Wall Street Indices Face Continued Pressure
The energy sector emerged as the best performer by a significant margin, supported by rising crude oil prices amid ongoing uncertainty regarding Middle East supply risks. However, major technology stocks experienced notable setbacks during the week.
Shares of Nvidia and Tesla each fell more than 4 percent, while Alphabet, Meta, and Microsoft declined approximately 2 percent each. The weakness in these technology giants contributed to the broader market downturn.
Meanwhile, U.S. Treasury yields climbed across all maturities. The 10-year Treasury yield, considered the primary benchmark for government borrowing, rose to approximately 4.39 percent. Additionally, the two-year yield, which is most sensitive to short-term Federal Reserve interest rate decisions, increased to nearly 3.9 percent, while the 30-year bond yield advanced to 4.96 percent by Friday evening.
European Markets Post Sharp Weekly Losses
European stock indices concluded weekly trading with significant declines as rising oil prices and interest rate hike expectations weighed on investor sentiment. The pan-European Stoxx 600 index fell 3.79 percent for the week, according to market reports.
Germany’s DAX index suffered the steepest decline among major regional benchmarks, dropping 4.55 percent. Italy’s FTSE MIB lost 3.33 percent, while France’s CAC 40 and Britain’s FTSE 100 slid 3.11 percent and 3.34 percent respectively during the same period.
The European Central Bank maintained interest rates at 2 percent during its Thursday meeting. However, ECB President Christine Lagarde warned that rising oil and gas prices would have a “tangible impact” on inflation in the near term and could pave the way for future interest rate increases.
Similarly, the Bank of England kept its main interest rate unchanged at 3.75 percent, as widely expected. The central bank echoed concerns raised by its European counterpart regarding inflationary pressures from energy markets.
Asian Markets Decline Amid Regional Tensions
Most Asia-Pacific markets retreated this week as military conflicts in the region and energy supply disruptions affected investor confidence. Japan’s Nikkei 225 declined 0.83 percent, while the broader Topix index fell 0.54 percent.
In contrast to the regional trend, Australia’s S&P/ASX 200 index lost 0.82 percent for the week. Chinese markets experienced more pronounced weakness, with the CSI 300 index sliding 2.19 percent and the Shanghai Composite falling 3.38 percent. Hong Kong’s Hang Seng Index dropped 0.75 percent.
South Korea provided a rare bright spot in the region. The KOSPI index for large-cap companies surged 5.36 percent, while the KOSDAQ index for smaller firms gained 0.74 percent, bucking the prevailing downward trend across Asian markets.
Market participants will likely monitor upcoming central bank communications and inflation data releases for signals about the trajectory of monetary policy. The persistence of elevated oil prices and their potential impact on inflation expectations remains a key uncertainty facing global equity markets in the coming weeks.
