Finance

While the broader market struggled, the energy sector remained a significant outlier due to a massive war premium. Brent crude prices surged past $110 per barrel on Friday following continued disruptions in the Strait of Hormuz. This supply crisis has caused the Energy Select Sector SPDR Fund to post substantial year-to-date gains, serving as a critical hedge for many investors.

The yield on the 10-year Treasury note hit 4.48% on Friday, its highest point in several months, as investors braced for persistent inflation and a potential hawkish shift from the Federal Reserve. Although yields retreated slightly toward the end of the session, the 'higher for longer' sentiment remains dominant. Market participants are increasingly skeptical of rate cuts later this year given the current energy crisis.

Digital assets were not spared from the broader market rout, with Bitcoin dropping more than 4% to trade below $66,000 on March 27. The downturn coincided with the largest options expiry of the year, which cleared roughly $14 billion in contracts and left the market vulnerable to macro pressures. Crypto-related stocks like Coinbase and MicroStrategy also saw steep declines, falling between 5% and 10% during the session.

Growth-oriented technology stocks have faced a difficult start to 2026, with the 'Magnificent Seven' seeing widespread losses. Tech giants such as Amazon, Microsoft, and Meta Platforms have significantly detracted from overall market returns as speculative AI positions are re-evaluated in a high-rate environment. Meta, in particular, saw its valuation pressured by legal decisions and internal restructuring announcements.