Markets In Focus: The Week That Was and What’s On Tap Week-Ending 3/13/2026
THE WEEK THAT WAS
US equities wrapped a bruising week, with broad-based selling driven by the escalating US-Israel war on Iran and the resulting chaos in global energy markets. The S&P 500 dropped 1.6%, the Nasdaq Composite gave up 1.3%, the Russell 2000 fell 1.9%, and the Invesco S&P 500 Equal Weight ETF (RSP) slid 2.3%. We’re seeing classic signs of stress: equalweight and small-caps underperformed cap-weighted benchmarks, confirming the pain is spreading well beyond the megacaps into the broader market. Breadth weakened noticeably, with far more decliners than advancers and new lows ticking higher across exchanges.
The dominant story is unmistakable—geopolitical escalation has spiked oil and gas prices. US and Israeli strikes on Iranian nuclear and energy facilities, combined with Iran’s retaliation through attacks on tankers and threats that have effectively choked the Strait of Hormuz (transits reportedly down sharply from normal volumes), have sent oil prices surging. Brent crude pushed well above $100/barrel in volatile trading, with intraday spikes approaching levels not seen since the early 2020s disruptions. This supply shock is reigniting inflation fears at precisely the wrong moment. Wednesday’s February CPI held steady at 2.4% YoY headline with a 0.3% MoM increase, while Friday’s January PCE print showed headline at 2.8% YoY, core at 3.1% YoY—both stubbornly elevated and underscoring that the disinflation path remains bumpy. Energy components in both reports ticked higher, a direct echo of the oil move. No major earnings season provided any counterbalance; macro and geopolitics dominated the tape.
Volatility has spiked—VIX levels pushed toward 30 in recent sessions, Treasury yields climbed on the inflation repricing, and rotation accelerated out of growth and consumer discretionary names most exposed to higher input costs and slower spending. Energy held up as the lone bright spot, while tech and cyclicals bore the brunt.
The oil shock appears persistent in the near term, likely keeping volatility elevated and pressuring multiples until we see either meaningful de-escalation, a diplomatic breakthrough, or evidence that alternative supply routes can offset the disruption (neither looks imminent). We’re watching closely for signs of oversold conditions in quality names, but the combination of sticky inflation data and sustained geopolitical risk argues for patience. Markets hate uncertainty, and right now uncertainty is winning.
THE WEEK AHEAD
Several high-impact macro events converge this week, demanding close attention across rates, inflation, and corporate earnings.
Macroeconomic Data
The week’s centerpiece is Wednesday’s FOMC decision, where the Fed is widely expected to hold rates steady at 4.25– 4.50%. With tariff-driven inflation re-accelerating and labor markets still resilient, Chair Powell faces a difficult communication challenge — markets will parse every word for signals on the trajectory and timing of any resumption of cuts. Geopolitically, U.S.–China trade tensions and evolving Ukraine ceasefire dynamics continue to inject volatility into risk assets.
Also Wednesday, February PPI is released. Consensus forecasts headline PPI at +0.3% MoM (+3.3% YoY) and core PPI at +0.3% MoM (+3.5% YoY) — data that, if hotter than expected, could further compress rate-cut expectations.
Prominent Earnings
On the earnings front, Micron and Alibaba offer real-time reads on AI infrastructure demand and China consumption. Consumer bellwethers Lululemon, Dollar Tree, Williams-Sonoma, and Macy’s will illuminate the health of the American consumer across income strata — critical inputs as stagflation risks mount.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
