Middle East tensions raise inflation expectations; gold sees largest weekly drop in six years.

Key News Highlights

Iran's Warning on Infrastructure Attacks

According to Xinhua, the Islamic Revolutionary Guard Corps of Iran announced on Thursday that the conflict with the U.S. and Israel has entered a "new phase." Iranian Foreign Minister Amir-Abdollahian warned that if domestic infrastructure is attacked again, Iran will respond with "zero restraint." Iran released satellite images showing damage to U.S. military facilities in Bahrain, the UAE, and Iraq. Both Israel and the U.S. have not indicated any plans to cease military operations, although leaders have made statements to reassure the markets.

Netanyahu's Statement on Airstrikes

Israeli Prime Minister Netanyahu stated that Israel "independently" targeted Iranian gas fields and will comply with President Trump's request to "pause" further airstrikes on energy facilities in Iran. Trump confirmed he advised Netanyahu against attacking Iranian energy sites.

U.S. Military Developments

Iran claimed that a U.S. F-35 fighter jet was hit by its advanced air defense system and may have crashed. The Revolutionary Guard stated that the fate of the aircraft is currently unclear.

U.S. Treasury's Oil Price Strategy

U.S. Treasury Secretary Yellen indicated that the U.S. might release strategic oil reserves and ease some sanctions on Iranian oil to stabilize soaring oil prices. She emphasized that oil prices would eventually return to levels seen before February 28.

Fed's Interest Rate Outlook

The expectation for interest rate cuts by the Federal Reserve has diminished significantly, leading to a drop in gold prices, which approached $4,500. The market reacted to the Bank of England's readiness to tackle inflation, causing U.S. Treasury yields to rise.

White House AI Regulation Framework

The White House is expected to submit a proposal for AI regulation to Congress, addressing issues such as online safety for children and the prioritization of federal standards over conflicting state laws.

Stock Market Performance

On March 19, U.S. stock indices fell for the second consecutive day, with the Dow Jones down 0.44% and the S&P 500 down 0.27%. Notable tech stocks like Nvidia and Apple saw declines, while the optical communication sector performed well.

Uber's Investment in Rivian

Uber announced plans to invest up to $1.25 billion in electric vehicle manufacturer Rivian to support its autonomous taxi service, with an initial order of 10,000 self-driving vehicles.

Planet Labs and FedEx Earnings

Planet Labs reported a 26% year-over-year revenue increase, while FedEx's Q3 revenue rose to $24 billion, reflecting a positive outlook for the company.

Hong Kong Stock Market Activity

On March 19, southbound funds net bought HK stocks worth HKD 26.19 billion, with notable purchases in the Yingfu Fund and Hang Seng China Enterprises.

Alibaba's Future Plans

Alibaba's CEO announced plans for cloud and AI revenues to exceed $100 billion in the next five years, while also discussing the potential for an IPO for its subsidiary, Pingtouge.

Xiaomi's New Product Launch

Xiaomi unveiled its new SU7 model featuring advanced laser radar technology and announced the start of testing for its first smartphone, marking a significant step in AI development.