The Markets (as of market close March 6, 2026)
Stocks fell last week as renewed inflation concerns and escalating geopolitical tensions weighed on stock traders’ sentiment. Each of the major benchmark indexes finished lower, with the Dow, S&P 500, and NASDAQ all falling to year-to-date lows. Crude oil prices surged to their highest level since August 2022 amid intensifying Middle East tensions that disrupted global energy trade. Rising energy costs heightened inflation fears and prompted a broad risk-off move across markets. Industrials, consumer staples, and materials were among the hardest-hit sectors, while Treasury yields moved higher and the U.S. dollar strengthened.
Last Week’s Economic News
- Employment declined by 92,000 in February, while the unemployment rate edged up to 4.4% and the number of unemployed rose to 7.6 million.
- Labor force participation slipped to 62.0%, and the employment-population ratio fell to 59.3%.
- Average hourly earnings increased 0.4% in February, bringing the year-over-year gain to 3.8%.
- Manufacturing activity expanded at a slower pace, with the PMI falling to 51.6 as tariffs and weather disruptions weighed on production and orders.
- Services sector growth also slowed, with the services PMI declining to 51.7 amid tariff uncertainty and weaker international demand.
- Import prices rose 0.2% in January, while export prices increased 0.6% and were up 2.6% year-over-year.
- Wholesale sales declined 0.2% in January, though retail sales remained stronger year-over-year.
- Weekly jobless claims held steady at 213,000, while continuing claims rose modestly.
- Gasoline prices increased to $3.015 per gallon, reflecting higher crude oil prices, though still slightly below year-ago levels.
Eye on the Week Ahead
Several key economic reports are due this week, including the second estimate of fourth-quarter GDP, along with updated inflation data from the Consumer Price Index and the personal consumption expenditures price index. Investors will be watching closely for signs that inflation pressures are reaccelerating.
Have a nice week!
Sincerely,
Robert G. Carpenter