S&P 500 suffers worst week
The S&P 500 had its worst week since last October, dropping 1.5% on Thursday alone [https://nytimes.com/2026/03/11/business/gas-oil-stocks-prices-iran.html]. Surging oil prices, inflation fears, and a weak labor market are to blame. The index is now testing support around 6,636 [https://nytimes.com/2026/03/11/business/gas-oil-stocks-prices-iran.html]. What sectors are expected to outperform if stagflation continues?
The S&P 500's slide below the 6,636 support level has analysts eyeing the 6,500 mark as the next key level to watch. Some are attributing the market's weakness to renewed tensions in the Middle East, particularly concerns about potential disruptions to oil supplies stemming from Iran. Energy stocks, unsurprisingly, bucked the downward trend, with some analysts predicting further gains if oil prices continue to climb. However, the broader market sentiment remains cautious, with investors weighing the potential impact of sustained inflation on corporate earnings. The unexpectedly weak jobs report added another layer of concern, fueling fears that the economy may be entering a period of stagflation. This has led to speculation about which sectors might prove resilient in such an environment, with some experts pointing to consumer staples and healthcare as potential safe havens.
