Weekly Market Insights | Wall Street Reacts to Middle East Conflict.

March 29, 2026

Stocks ended a challenging week lower as investors' attention shifted from updates on ceasefire talks to concerns about the economic impact of a protracted conflict. The Standard &

Poor’s 500 Index lost 2.12 percent, while the Nasdaq Composite Index fell 3.23 percent. The Dow Jones Industrial Average slid 0.90 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, ended the week flat (-0.05 percent).^1,2

Challenging Week

Stocks opened higher to start last week as fresh optimism for a resolution to the Middle East conflict permeated market sentiment, and no further news on Iraq’s force majeure declaration appeared to help momentum. Both the Dow Industrials and S&P 500 booked their best day since early February as the White House reported "very good and productive conversations" to end hostilities.³

Markets were under pressure on Tuesday but staged a recovery rally midweek amid reports that Pakistan was mediating ceasefire talks. All three major averages posted solid gains, though it appeared that retail investors remained on the sidelines.⁴

The upbeat sentiment was short-lived. Markets were under steady pressure Thursday despite news after the close of trading that the White House was extending the previous pause on military strikes on Iranian energy infrastructure by an additional 10 days. The selling picked up on Friday. The Nasdaq and Dow Industrials fell into correction territory, while the S&P suffered its longest weekly losing streak in almost four years.

Markets have already delivered plenty to chaos in 2026, from AI bubble concerns (the negative Meta verdict adds more concerns) to rising geopolitical tensions. With volatility continuing to dominate headlines, understanding what's truly driving portfolio performance has never been more challenging.

Financial markets will continue to be volatile until the war with Iran ends, but for now escalation is the path with American special ops and ground operations likely commencing.
However, the optics after the war ends will be good, but the journey will continue to be bumpy – so buckle up and think like Warren Buffett to “Be Greedy when others are Fearful”. That philosophy for investing worked out well for Warren and his investors over the many decades.

Why Gold Has Fallen: A Liquidity Story, Not a Broken Thesis

I do not think gold's sharp sell-off in March is a failure of its safe-haven role. I believe it is the result of a global liquidity crunch that forced investors to sell what they could, not what they believed in to raise cash to plug holes. As reserve flows stall and deleveraging runs its course, the same pressures dragging gold down today may be quietly setting the stage for its next rally.

Gold seems to have found its footing and held in dollar terms this past week. In stressed markets like the one we are in from the ongoing war with Iran, correlations break and even safe haven assets like gold get sold temporarily. Keep calm and carry on. . . . .

Bitcrap AKA Bitcoin

Over in the digital world, Bitcoin continues to be “dumped” into rallies. As I mentioned in my prior updates, I think stablecoins have replaced Bitcoin for cross border money transfers in the digital world. We have witnessed that Bitcoin has not acted as a store of value (digital gold), inflation hedge and its “investment merit” is now highly questionable, especially when you know the background of the number one Bitcoin cheerleader, Michael Saylor, who personally lost $6 billion dollars on paper due to the price drop of Micro Strategy stock in the March 2000 dot-com crash.

The financial statements of Micro Strategy, Inc. were materially inaccurate and investors were misled by inflated revenue/profit figures and it was categorized as an accounting fraud / reporting violation case (civil, not criminal) in which Michael Saylor and two other executives settled with the SEC paying millions of dollars of fines and disgorgement back to shareholders.

Need I go on? Don’t be left holding the Bitcoin bag. Saylor’s renamed company, Strategy, will likely run out of money next year and be forced to start selling its Bitcoin. I don’t think there will be many suckers left to buy Strategy preferred stock or debt offerings. However, for now Saylor is doubling down on his fantasy, continuing to buy a falling knife (Bitcoin). Strategy, Inc. is a volatile tech stock with a broken business model and I am just calling it like I see it coming.

Is Your Financial Advisor a Wise Investor and also a Gatekeeper Protecting you from Bad Investments?

1. Wise Investor - Castle Financial clients own a core Global Balanced Blue-Chip Fund rated 5 Stars by Morningstar that was up about 37% in 2025 and is up about 8% YTD in 2026 with a great long-term track record.

2. Wise Investor - Castle Financial clients own a gold fund that pays a 1% monthly dividend. Historically, there was no way to own gold and receive income.

3. Wise Investor - Castle Financial clients traded the crypto sector for profits and got out before the crypto implosion. However, the future is digital and the tokenization of assets will afford great investment opportunities.

4. Gatekeeper - Castle Financial kept clients from investing in Private Credit which appears to be in trouble with restricted client withdrawals.

5. Wise Investor - Knowing how to handle the current volatility from the Iran war to increase client's wealth in the future.

6. Wise Investor - Tactically moved to US Treasury Bills, out of any longer dated fixed income funds.

I can go on, and the point is now more than ever you need a seasoned and wise financial advisor to navigate today's rapidly evolving and also complex and confusing markets. Someone who will remain calm and knows how to embrace the volatility to invest wisely for the future. If you are not already a valued client of Castle Financial, give us a call at 732-888-4994.

^{Source: YCharts.com, March 28, 2026. Weekly performance is measured from Monday, March 23 to Friday, March 27. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}

Sector Spotlight

Some investors have turned to energy stocks during the volatility. At the close of trading last Friday, 19 energy stocks in the S&P 500 traded at their 52-week highs.⁶

This Week: Key Economic Data

Monday: New York Fed President John Williams speaks.

Tuesday: S&P/Case Shiller Home Price Index* (Jan.). Consumer Confidence. Job Openings. Fed speeches: Austan Goolsbee (Chicago), Michael Barr, Michelle Bowman.

Wednesday: Retail Sales* (Feb.). ADP Employment Report. Business Inventories* (Jan.). PMI—Manufacturing. ISM Manufacturing. EIA Petroleum Status Report. Fed speeches: Alberto Musalem (St. Louis), Michael Barr.

Thursday: Weekly Jobless Claims. Trade Deficit (Feb.). Fed official Lorie Logan speaks. Factory Orders. EIA Natural Gas Report. Motor Vehicle Sales. Fed Balance Sheet.

Friday: Employment Report. PMI—Services.

^{* indicates federal data release delayed by the government shutdown}

^{Source: Investors Business Daily - Econoday economic calendar: March 27, 2026.}
^{The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.}

This Week: Companies Reporting Earnings

Wednesday: Nike, Inc. (NKE), McCormick & Company, Incorporated (MKC/MKC.V)

^{Source: Zacks, March 27, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.}

"Self-pity in its early stages is as snug as a feather mattress. Only when it hardens does it become uncomfortable."

– Maya Angelou

IRS Program Helps Seniors Prepare Taxes

The Internal Revenue Service (IRS) offers a Free File tool that provides online tax preparation, direct deposit of refunds, and electronic filing choices. This tool can be helpful for taxpayers on a fixed budget, including seniors and retirees. Here are some things to know about the tool:

IRS Free File is available at IRS.gov and features some of the biggest names in tax software.

To use the tool, taxpayers can browse multiple offers.
The eligibility standards for Free File vary by tax partner but are usually based on income, age, and state residency.
Free File has the most common forms needed to file your taxes. Even if you have a unique tax situation, you may still be able to use Free File.
Some Free File products are available in Spanish.
You can also search for credits and deductions in Free File.
Some providers in Free File also offer state return preparation. You can use the lookup tool in Free File to find the tax partner that might be appropriate for your state requirements.
Taxpayers can access Free File through their computers, smartphones, or tablets. The site is designed for mobile usage.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁷

Aloe Vera: One Powerful Plant

Aloe vera is one of those medicinal plants that can be used for almost everything. It is a cactus-type plant that grows well in many climates and has thick, juicy leaves that store water. Because of this, aloe vera is loved for its hydrating properties. Let's look at aloe's many benefits and how you can include it in your daily routine.

The thick, sticky gel in aloe leaves contains powerful bioactive compounds, including vitamins, minerals, amino acids, and antioxidants.

Aloe vera is also known for its healing properties. Its antibacterial, antiviral, and antiseptic properties may help heal wounds and treat skin problems. It can also be used as a topical treatment for first- and second-degree burns.

Tip adapted from Medical News Today⁸

I sleep by day and fly by night, with no feathers to aid my flight. What am I?

Last Week's Riddle: What comes at the end of a rainbow?

Answer: The letter W.

Vanessa Virginiensis (American Lady Butterfly)

Eastampton, NJ, United States

Footnotes And Sources

^{1. WSJ.com, March 27, 2026}
^{2. Investing.com, March 27, 2026}
^{3. CNBC.com, March 16, 2026}
^{4. CNBC.com, March 24, 2026}
^{5. WSJ.com, March 27, 2026}
^{6. CNBC.com, March 19, 2026}
^{7. IRS.gov, June 23, 2025}
^{8. Medicalnewstoday.com, August 27, 2025}

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