Tech companies weighed on US stock indices as sharp losses for AI companies offset robustness in other sectors ahead of major earnings reports. The Nasdaq 100 dropped 1% and the S&P 500 fell 0.5%, pulling back from their records. Reports indicated that OpenAI missed its own targets for user acquisition sales. The developments magnified recent skepticism on whether the surge in AI capital expenditure is warranted, triggering selling pressure for software companies and hardware producers alike. Oracle and Coreweave were both 5% down, while Nvidia, Broadcom, and Micron dropped close to 3%. Meanwhile, rival tech hyperscalers Meta, Microsoft, and Alphabet were lower ahead of their earnings after tomorrow's closing bell. In turn, the Dow inched higher on strength from traditional and defensive sectors, even though high energy prices from the war and the risk of restrictive policy remained headwinds for the US economy. Visa, JPMorgan, and Johnson & Johnson were nearly 1% up.

Gold plunged more than 2% to $4,570 per ounce on Tuesday, hitting its lowest level since late March, as surging oil prices and stalled US-Iran negotiations intensified inflation concerns ahead of key central bank decisions. A US official revealed that President Donald Trump rejected Iran’s latest proposal to resolve the two-month conflict, dimming hopes for a swift resolution to the energy supply disruptions that have fueled inflationary pressures, and, in turn, the likelihood of higher interest rates. While gold is traditionally viewed as an inflation hedge, rising rates diminish its appeal as a non-yielding asset. The US Federal Reserve is expected to hold interest rates at what may be Jerome Powell’s final meeting as chair, with investors watching closely for clues on future policy shifts. Meanwhile, the Bank of Japan held rates steady in a split decision, while other major central banks are also expected to stand pat this week but to adopt a more hawkish tone.

Industrial production in India rose by 4.1% from the previous year in March of 2026, slowing from the revised 5.1% expansion in February to reflect the slowest increase in five months, albeit beating expectations of a 3.7% expansion. Despite remaining robust, the pullback reflected some impact from the outbreak of war in the Middle East in the Indian goods production, hampered by the surge in energy prices and inflationary risks amid the pressure for the rupee. Manufacturing production, which is responsible for over 77% of all of industrial output, rose 4.3% from the 5.9% increase. Mining output jumped by 5.5%, picking up from the 3.1% the prior month, while higher feedstock costs drove electricity output growth to slow to 0.8% from 2.3%.

Eurozone median inflation expectations for the next 12 months jumped to 4.0% in March 2026, the highest level since October 2023 and up sharply from 2.5% in February. This marked the largest monthly increase since early 2022, when Russia’s invasion of Ukraine disrupted energy markets. The escalating Iran war and the blockade of the Strait of Hormuz have led to a surge in energy prices and internsifed fears of broader inflationary pressures. Longer-term expectations also rose, with three-year inflation forecasts climbing to 3.0% in March from 2.5% in February, and five-year expectations edging up to 2.4% from 2.3%. Uncertainty over short-term inflation grew, though the upward trend in expectations was consistent across income groups. Lower-income respondents reported slightly higher near-term expectations, while younger respondents (18-34) continued to anticipate lower inflation than older age groups.

UK 10-year gilt yields rose to 5%, nearing levels last seen in 2008, as stalled US-Iran negotiations and the effective closure of the Strait of Hormuz heightened inflation concerns and strengthened expectations of a tighter Bank of England policy. The geopolitical tensions have added pressure on markets, with Brent crude trading above $111 per barrel after US President Donald Trump rejected Iran’s proposal to delay nuclear talks until the conflict and shipping disputes are resolved. Domestically, Prime Minister Keir Starmer faces a critical vote on whether to launch an investigation into his assurances that due process was followed in appointing Peter Mandelson as US ambassador. The scrutiny comes as the Bank of England prepares for its Thursday meeting, where policymakers are expected to hold rates steady amid the Middle East crisis. However, markets continue to price in two quarter-point rate hikes for 2026.

Spain’s unemployment rate climbed to 10.83% in the first quarter of 2026, up from 9.93% in the previous period, above market expectations of 9.8%. The number of unemployed persons rose by 231,500, reaching a total of 2.71 million. This seasonal spike follows the conclusion of the holiday period, a typical trend in the Spanish labor market. Employment figures saw a contraction, with 170,300 jobs lost, bringing the total number of occupied persons to 22.29 million. The services sector bore the brunt of the decline, shedding 228,400 positions, while industry showed resilience with 28,100 new roles. Despite the quarterly dip, the annual trend remains positive, with unemployment falling by 80,600 compared to Q1 2025. The Labor Force Participation Rate increased slightly to 58.86%, as the active population grew by 447,000.