Overnight US stocks | S&P 500 index falls for three consecutive days, chip stocks generally drop, and Brent crude oil closes above $100 for the first time in nearly four years.

On Thursday, the three major indexes fell sharply, with the Dow Jones Industrial Average falling below 47,000 points to hit a new low for the year. The S&P 500 index declined for the third consecutive trading day. The continued rise in oil prices has exacerbated inflation concerns and quickly dampened hopes for a rate cut by the Federal Reserve. [US Stocks] At the close, the Dow Jones fell 739.42 points, or 1.56%, to 46,677.85 points; the Nasdaq fell 404.16 points, or 1.78%, to 22,311.98 points; the S&P 500 index dropped 103.22 points, or 1.52%, to 6,672.58 points. Occidental Petroleum Corporation (OXY.US) rose 5%, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) and Intel Corporation (INTC.US) both fell over 5%, NVIDIA Corporation (NVDA.US) dropped over 1%, Apple Inc. (AAPL.US) fell nearly 2%. The Nasdaq Golden Dragon Index fell 1%, XPeng, Inc. ADR Sponsored Class A (XPEV.US) rose 3.5%, Alibaba Group Holding Limited Sponsored ADR (BABA.US) fell over 1%. [European Stocks] The German DAX30 index rose 5.67 points, or 0.02%, to 23,593.45 points; the UK's FTSE 100 index fell 45.17 points, or 0.44%, to 10,308.60 points; the French CAC40 index dropped 57.37 points, or 0.71%, to 7,984.44 points; the Europe STOXX 50 index declined 43.02 points, or 0.74%, to 5,751.66 points; the Spanish IBEX35 index fell 208.09 points, or 1.20%, to 17,143.81 points; the Italian FTSE MIB index dropped 285.46 points, or 0.64%, to 44,487.50 points. [Asian Stock Markets] The Nikkei 225 index fell 1.04%, the South Korean KOSPI index fell 0.48%, and the Indonesian Jakarta Composite Index fell 0.37%. [Cryptocurrency] Bitcoin was relatively stable, trading at $70,239.4, and Ethereum traded at $2,064.75. [Crude Oil] Light crude oil futures for delivery in April on the New York Mercantile Exchange rose $8.48 to close at $95.73 per barrel, an increase of 9.72%; Brent crude oil futures for delivery in May rose $8.48 to close at $100.46 per barrel, an increase of 9.22%. The settlement price for Brent crude oil futures closed above $100 per barrel for the first time since August 2022, as millions of barrels of oil remain stranded in the Persian Gulf, causing the largest disruption in oil markets in history. Global benchmark oil prices surged over 9% due to multiple ship attacks in the Arabian Gulf, leading investors to believe that Iran's maritime sabotage may expand beyond the critical Strait of Hormuz. Earlier, Trump posted on Truth Social, stating that Iran not having nuclear weapons "is far more important to me than rising oil prices," indicating that the conflict may continue. [US Dollar Index] The US Dollar Index, which measures the dollar against six major currencies, rose 0.52% to close at 99.746 at the end of the market. At market close in New York, 1 Euro exchanged for $1.1521, lower than the previous trading day's $1.1569; 1 Pound exchanged for $1.3356, lower than the previous trading day's $1.3407. 1 Dollar exchanged for 159.31 Yen, higher than the previous trading day's 158.89 Yen; 1 Dollar exchanged for 0.7845 Swiss Francs, higher than the previous trading day's 0.7799 Swiss Francs; 1 Dollar exchanged for 1.3626 Canadian Dollars, higher than the previous trading day's 1.3587 Canadian Dollars; 1 Dollar exchanged for 9.3433 Swedish Krona, higher than the previous trading day's 9.2301 Swedish Krona. [Metals] Precious metals fell, with spot gold closing at $5,079.92 and spot silver closing at $83.834. [Macro News] US Initial Jobless Claims Decline Slightly, Indicating Moderate Job Loss. US initial jobless claims fell last week, indicating that layoffs by companies remain limited. The US Department of Labor reported on Thursday that initial jobless claims for the week ending March 7 were 213,000, lower than the previous week's 214,000 and below the market expectation of 215,000. Continuing jobless claims for the week ending February 28 dropped to 1.85 million, down from 1.87 million the previous week. This data on initial jobless claims released on Thursday follows a weaker-than-expected jobs report last week, which saw a loss of 92,000 jobs last month after gaining 126,000 in January. The relatively modest initial jobless claims data suggests that companies are more inclined to retain employees rather than conduct large-scale layoffs. US Housing Starts in January Rise to Nearly One-Year High. US housing starts rose for the third consecutive month in January to the fastest pace in nearly a year, driven primarily by a surge in construction of multifamily housing projects. Data released on Thursday showed that housing starts in January increased by 7.2% at an annual rate of 1.49 million units, exceeding market expectations. The growth was mainly driven by a nearly 30% surge in construction of multifamily housing, while single-family home construction saw a decline. This report suggests a certain momentum in the housing market at the start of the year, as low mortgage rates and sales incentives offered by developers attract potential homebuyers back into the market. This is gradually absorbing the backlog of housing inventory and encouraging more construction activity. However, housing builders' confidence remains low due to ongoing concerns about housing affordability and high construction costs. Data released earlier this week showed the largest weekly increase in US mortgage rates since September last year following the market disruption caused by the conflict in Iran. US Trade Deficit Narrows Significantly in January. The US trade deficit narrowed in January due to growth in exports, as domestic importers experienced a tumultuous year coping with volatile tariff policies. Data released by the US Department of Commerce on Thursday showed that the goods and services trade deficit narrowed by over 25% from the previous month to $54.5 billion, compared to a median market expectation of a deficit of $66 billion. Exports in January increased by 5.5% on a month-on-month basis, driven by an increase in exports of nonmonetary gold and other precious metals, computers, and aircraft. Overall imports decreased by 0.7%, reflecting a reduction in pharmaceutical imports. Last year, monthly trade flows experienced significant fluctuations as US importers responded to a series of tariff announcements by the Trump administration. Tariff rates remained unchanged in January, but subsequently, the US Supreme Court overturned several of Trump's tariff measures on February 20, prompting Trump to re-implement these tariffs through other legal authorities. Trump Administration Plans to Suspend the Jones Act to Constrain Oil Prices. To curb the surge in oil prices, the Trump administration is reportedly planning to issue a temporary waiver on the Jones Act, a maritime law with a century-old history that requires goods transported between US ports to be carried by US-built vessels. The 30-day waiver of the Jones Act would allow foreign oil tankers to help supply refining facilities on the East Coast with fuel from the Gulf of Mexico coast and other areas in the US. At a time when Trump is considering various measures to contain the sharp rise in oil and gasoline prices due to the conflict with Iran. Fed Governor Bauman Proposes Slight Reduction in Capital Requirements for Large Banks. Federal Reserve's Vice Chair for Supervision, Bauman, stated on Thursday that capital requirements for large banks will be slightly reduced after revising a comprehensive banking capital rule, seen as a major victory for Wall Street banks who successfully resisted earlier proposals to increase capital. Bauman outlined adjustments to the Basel Accord and Global Systemically Important Banks (GSIB surcharge) capital requirements. These rules determine how much capital banks need to set aside to absorb potential losses. By making "reasonable adjustments" to existing rules, overall, capital requirements for large banks will be "slightly reduced," according to her. These adjustments will eliminate overlapping regulatory standards, align capital requirements with banks' actual risks, while acknowledging the deviation in recent years of continuously raising bank loss-absorbing capital. Market No Longer Fully Betting on Fed Rate Cut This Year. Bond traders are no longer fully pricing in expectations of a rate cut by the Federal Reserve this year. Interest rate swaps linked to Federal Open Market Committee meetings show that traders on Thursday expected only a 24 basis point rate cut this year, less than a full 25 basis point cut, whereas it was around 30 basis points on Wednesday night. This change comes as US Treasury yields continue to fall, with the two-year Treasury yield rising 4 basis points, nearing 3.70%. US bonds faced pressure this week as investors feared the Middle East conflict will continue to push up energy prices, leading to a resurgence of inflation. Institutions: Strategic Oil Reserves May Take Weeks to Reach Destinations. To compensate for losses caused by the disruption in the Strait of Hormuz, emergency releases of oil reserves may take weeks to get onboard and even longer to reach final destinations. Analysts at energy consultancy Energy Aspects said that most countries' oil reserves take about two weeks to release. According to the US Energy Information Administration (EIA), strategic oil reserves stored in giant salt caverns along the US Gulf Coast could enter the market within 13 days of a presidential decision. Energy Aspects analysts told clients, "But shipping to Asia takes 45 days, meaning that any US strategic oil reserve exports may not reach the necessary destinations in Asia until mid-May at the earliest." Several countries, including the US and Japan, have announced plans to release around 400 million barrels of oil from their reserves. "The velocity of the releases is more important because it's not possible to release all that oil at once," Energy Aspects wrote. The largest rate of releases before was 1.3 million barrels per day, covering less than a tenth of the current supply disruption. CME Warns: US Government Intervention in Oil Futures Market Would Cause Epic Disaster. According to the Financial Times, the head of CME Group Inc. Class A (CME) warned that if the US government attempts to intervene in the derivatives market to suppress oil prices during a conflict with Iran, it would have "catastrophic consequences." CME Group Inc. Class A's CEO Terry Duffy said that if the US government tries to control the rise in oil prices by intervening in the futures market, it would undermine market confidence. The exchange oversees the US oil futures trading market. Duffy said, "Markets don't like government intervention in pricing." He stated that such action by the government could trigger an "epic disaster" as investors may lose confidence in the market's function of setting prices for key commodities. There were previous reports that the US Treasury Department is considering measures to lower oil prices, including intervening in the futures market. [Stock News] Adobe Announces CEO Resignation, Latest Earnings Forecast Fails to Ease Market Concerns. Adobe (ADBE.US) announced that its Chief Executive Officer Shantanu Narayen will step down as the head of this creative software giant. This comes as the market expresses doubts about the company's ability to thrive in the era of artificial intelligence. The company also provided sales forecasts for the current quarter, which, while slightly above expectations, failed to alleviate investor concerns that the software manufacturer is falling behind new competitors. The company stated on Thursday that revenue for the quarter ending in May will reach $64.3 billion to $64.8 billion. Analysts had an average expectation of $64.3 billion. Excluding certain items, earnings per share are expected to be $5.80 to $5.85, while analysts' average expectation was $5.70. After-market trading, Adobe's stock price fell over 7%. Amazon.com, Inc. Seizes the Moment to Issue $54 Billion Global Bonds. This week, various banks collectively sold $54 billion of Amazon.com, Inc. (AMZN.US) corporate bonds. As tensions escalate in the conflict with Iran, these banks made it clear that their sales strategy is that Amazon.com, Inc. is a dependable choice in an increasingly unpredictable world. Investors seem to be listening. The company borrowed a total of $37 billion in the US on Tuesday, sold in 11 parts, receiving orders as high as $126 billion from fund managers, nearing an all-time high. On Wednesday, it made its Eurobond market debut, issuing 14.5 billion ($16.8 billion), the largest corporate bond offering in the eurozone. S&P Considering Rule Changes to Expedite SpaceX's Entry into S&P 500 Index. S&P Dow Jones Indices is reportedly considering modifying rules regarding how companies are added to the S&P 500 index. This move could expedite SpaceX's entry into the index after its initial public offering (IPO). These rule changes may mean that Tesla, Inc. (TSLA.US) CEO Musk's space transport and satellite company will see a wave of passive buying amounting to tens of billions of dollars after it goes public. Funds tracking the index must buy newly added stocks, and institutions estimate that around $24 trillion in assets are tied to the S&P 500 index. Nasdaq Golden Dragon Index closed 1% lower, XPeng, Inc. ADR Sponsored Class A (XPEV.US) rose 3.5%, Alibaba Group Holding Limited Sponsored ADR (BABA.US) fell over 1%. [Translated by Just Translate]