Market volatility has intensified as of **February 24, 2026**, driven by a combination of shifting trade policies, stubborn inflation data, and heightened geopolitical tensions in the Middle East. Global equities are under pressure as investors recalibrate expectations for interest rate cuts following a recent string of economic reports. Equity Markets and Indices The major Wall Street indices have retreated sharply. The **Dow Jones Industrial Average** fell **1.66%** to close at **48,804**, while the **S&P 500** declined **1.04%** to **6,837**. The tech-heavy **Nasdaq Composite** also finished lower, shedding **1.13%** to end the session at **22,627**. Sentiment was further dampened by a **10%** surge in the **VIX**, which reached **21.01**, signaling increased fear among market participants. In Europe, the **DAX** in Germany dropped **1.06%**, even as manufacturing data showed its first expansion since 2022. Conversely, the **Hang Seng** in Hong Kong provided a rare bright spot, gaining **2.53%** as Chinese traders returned from the Lunar New Year holiday. Inflation and Interest Rates Recent macro data has complicated the path for monetary policy. The **Core PCE inflation** rate rose to **3.0%**, exceeding the previous **2.8%** and moving further from the Federal Reserve's target. Simultaneously, **Q4 GDP** growth slowed significantly to **1.4%** on an annualized basis. This "stagflationary" signal has led markets to price out a spring rate cut. The **Federal Reserve** held interest rates steady in the **3.5% to 3.75%** range during its last meeting. Current projections now suggest the first potential reduction may not arrive until **July 2026**, as policymakers wait for clearer evidence of cooling prices. Commodities and Digital Assets Commodity markets are reacting to the "risk-off" environment. **Gold** has surged **2.35%** to **$5,227** per ounce, hitting its highest level in weeks as investors seek safety amid trade uncertainty. **Crude Oil (WTI)** has also climbed, rising to **$66.51** per barrel, supported by a risk premium related to military assets moving into the Middle East. In the digital asset space, **Bitcoin** has struggled to maintain momentum. The cryptocurrency fell to a two-week low near **$64,000** before stabilizing. Analysts point to **ETF outflows** and a general lack of conviction-driven buying as the primary factors keeping prices below the **$67,000** resistance zone. Technology and Sector Trends The technology sector is undergoing a transition from hype to practical application. Industry forecasts for **2026** suggest a shift toward "Cloud 3.0," where cloud infrastructure is being redesigned as the operational backbone for sovereign and private AI systems. In India, the tech sector is projected to grow by **6.1%** this fiscal year, reaching **$315 billion** in revenue. While hiring in traditional software services has slowed, demand for specialized AI-led services and automotive camera modules—critical for autonomous driving—continues to expand, with the latter market entering a decade-long transformation.