Middle East Conflict and Rate Hike Expectation Reverberation: Global Asset Tremor, US Stocks Fall for Four Consecutive Weeks, Bond Market 'Bloodbath', Gold Posts Largest Weekly Decline in 43 Years

BlockBeats News, March 21st. The escalating Middle East situation, coupled with the sudden warming of Federal Reserve rate hike expectations, has caused a global market systemic shock. The US stock market has fallen for the fourth consecutive week, marking the longest losing streak in a year. The Nasdaq fell over 2% in a single day, with tech stocks under pressure. Global bond yields surged significantly, with US, UK, and German bonds hitting multi-year highs, leading to massive deleveraging.

Commodities experienced drastic divergence, with gold breaking below the $4500 mark, experiencing a single-week plunge of over 10%, the largest since 1983, calling into question its safe-haven status. Meanwhile, oil surged due to Middle East supply risks, with Brent crude surpassing $110, and Dubai crude oil futures skyrocketing over 16% in a single day. At the same time, Bitcoin found support around $70,000, outperforming gold for three consecutive weeks.

Market analysis believes that geopolitical conflict has boosted energy prices and intensified inflation expectations, forcing a reassessment of the monetary policy path. Global financial conditions are rapidly tightening, and risk assets are still in a downward repricing process.