OSLO, April 23 (Reuters) - Norway's $2.2 trillion

sovereign wealth fund, the world's largest, on Thursday reported

a first-quarter loss of 636 billion Norwegian crowns ($68.44

billion) as the war in the Middle East weighed on global stocks.

Norges Bank Investment Management (NBIM), which holds around

half of its funds in the United States, posted a negative return

of 1.9% for the January-March period, beating its benchmark

index by 0.01 percentage point.

"The result reflects a quarter with challenging market

conditions," deputy CEO Trond Grande said in a statement.

"We saw limited impact on fixed income and real estate, but

it was the decline in equities, especially among large U.S.

technology companies, that determined the outcome," he added.

The war that began with the U.S. and Israel launching

coordinated strikes against Iran in late February left the S&P

500 stock index with its deepest quarterly decline since 2022,

although markets have since recovered.

($1 = 9.2922 Norwegian crowns)