All three equity indexes finished last week higher as the S&P 500, Nasdaq Composite and Dow Jones Industrial Average closed up 3.48%, 3.37% and 3.22%, respectively. The week's positive returns marked a third consecutive week of gains amid a quiet week of trading and calming banking industry headlines. Treasuries weakened, with the 2-year yield climbing above 4%, while the dollar was down overall. Gold and oil prices rose, with the latter benefiting from waning concerns about bank-related pressures and export disruptions from Iraq. FANMAGs were mostly higher, while semis and airlines were among the strongest-performing groups. The week saw little notable economic or earnings news, and the Fed remains alert to uncertainties related to the current banking backdrop. Nevertheless, bulls are taking comfort from ongoing banking stabilization and easing bond-market volatility. However, there are still concerns about stretched valuations, consumer resilience and market expectations for a pivot to rate cuts.
Dated Brent, the world's most important oil price benchmark, will soon be transformed, allowing crude supplies from west Texas to help determine the price of millions of barrels a day of petroleum transactions. The existing benchmark, Dated Brent, is slowly running out of tradable oil for it to remain reliable. Its publisher, S&P Global Commodity Insights, better known as Platts, has been forced to make a dramatic overhaul. From cargoes for June onward, West Texas Intermediate Midland oil from the Permian will become one of a handful of grades that set the Dated benchmark. Dated, which helps to set the price of about two-thirds of the world's oil and even defines the price of some gas deals, lies at the center of a complex web of derivatives, ultimately shaping Brent oil futures that get traded on exchanges. The shift is being made by following a careful process. First, traders can offer WTI Midland for sale from the US Gulf Coast. It will be delivered into Rotterdam and then the price will be netted back using a freight adjustment factor as if it's shipped from the North Sea. Platts will evaluate if the oil is offered at a higher or lower level than five existing grades that set Dated — Brent, Forties, Oseberg, Ekofisk, or Troll. If Platts judges that WTI Midland is the most competitive price on offer, or actually sold, then it could set Dated.
Gold prices have risen above $2,000 per troy ounce for the first time since Russia invaded Ukraine, driven by banking-sector turmoil and economic worries. The most actively traded gold futures contract has risen 7.4% to $1,973.50 in March and reached an intraday high of $2,014.90 last week, making it the most significant monthly percentage increase since May 2021. Investors' rush to safer investments has driven down government debt yields, increasing gold's relative appeal. The slide in yields has also slightly weakened the dollar, making gold less expensive for overseas investors. Analysts and investors said the banking tumult portends tightening economic conditions and a pause in the Federal Reserve's aggressive interest-rate increase campaign, which could drive further gains. Shares of gold producers were some of the best performers in March. Investors poured about $1.26 billion into gold mutual and exchange-traded funds during the week ended March 22, the most significant weekly net inflow since April 2022. The picture in markets and the economy remains murky, but some are betting that the gains can continue for now.
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