Market Update: Stocks Hold Steady, Oil Rises, and Fed in Focus

Image Source : Krish Capital Pty Ltd

Index Update

On Monday, the Dow rose 0.85%, the S&P 500 gained 0.64%, and the Nasdaq edged up 0.31%, with 10 of 11 S&P sectors closing higher. Despite gains, the Nasdaq remains in a correction, down over 11% from a recent high. Weak retail sales data raised speculation of potential Fed rate cuts later this year. Treasury Secretary Bessent called market corrections “healthy” but acknowledged recession risks. Investors now await the Fed’s policy decision on Wednesday, with rates expected to remain unchanged.

Market Movers

On Monday, the top gainers were Annexon, Inc. (+21.15%), followed by Science Applications International Corporation (+14.73%). On the contrary Incyte Corporation (-11.58%) and Affirm Holdings, Inc. (-6.77%) declined the most the same day.

Commodities Update

WTI crude oil futures rose to $68.3 per barrel, marking a third consecutive gain, driven by Middle East tensions and supply concerns. Israel launched a major attack on Gaza, while Trump warned Iran over Houthi attacks. Hopes for increased demand from China also supported prices. However, potential progress in Russia-Ukraine peace talks and trade tensions could limit gains. Trump is set to discuss the war with Putin later today.

Macro Update

The US dollar index hovered around 103.5 on Tuesday, near five-month lows, amid economic uncertainties and trade tensions. Weaker-than-expected US retail sales added to concerns, though stronger control-group sales provided some reassurance. Markets await the Fed’s policy decision on Wednesday, with rates expected to remain unchanged, while pricing in 60 basis points of cuts this year. The Bank of Japan and the Bank of England will also announce policy decisions later this week.

Futures Update

US stock futures remained steady on Tuesday after two straight days of gains, offering a temporary break from the market's recent decline.

Bitcoin traded at $82,868 on Tuesday, March 18, down 1.42% from the previous session. Over the past four weeks, it declined 14.25%, but it remains up 30.02% over the past year.

Stocks continued to rise on Monday following a rebound last Friday, despite significant weekly losses. The major indices finished in positive territory after a day of gains, with the S&P 500 up 36.18 points (0.64%) to close at 5,675.11 and the Nasdaq rising 54.58 points (0.3%) to 17,808.66. The S&P 500 is currently testing important support levels and is expected to consolidate near an immediate resistance zone. Although there is potential for a relief rally this week, the 14-period RSI's position below the neutral midpoint suggests a possible rebound. Key resistance is at 5,705, while support is around 5,504.