Weekly Market Recap: Fed Signals, Market Movers & Commodities Update

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Index Update

Investor sentiment was influenced by the Fed's decision to hold rates while signaling two possible cuts this year. Concerns over inflation and downgraded growth forecasts raised stagflation fears. Nike and FedEx fell over 5% after weak earnings, while Micron Technology gained 1% on strong results and an optimistic outlook.

Market Movers

On Thursday, the top gainers were  OptiNose, Inc. (+57.83%), followed by Autolus Therapeutics plc (+6.7%). On the contrary Titan Machinery Inc. (-15.55%) and JOYY Inc. (-10.41%) declined the most the same day.

Commodities Update

Brent crude rose above $72 per barrel, set for its best week since January, as US sanctions on Iran and OPEC+ output cuts fueled supply concerns. The US targeted Chinese refineries and vessels transporting Iranian oil, potentially reducing Iran's exports by 1 million bpd. OPEC+ plans phased output cuts until June 2026, partially offset by revived production elsewhere.

Macro Update

The 10-year US Treasury yield steadied at 4.25% as investors reacted to Fed Chair Powell’s cautious stance on rate cuts. The Fed kept rates unchanged, signaled two possible cuts this year, and highlighted economic risks. Powell downplayed tariff-driven inflation, while the Fed slowed its balance sheet runoff, reducing Treasury reductions to $5 billion per month.

Futures Update

US stock futures rose Friday, with the S&P 500 set to end a four-week losing streak, the Dow staying positive for the week, and the Nasdaq heading for a fifth weekly decline.

Bitcoin traded at $84,028 on March 21, down 0.21% from the previous session. It declined 12.99% over the past four weeks but gained 32.41% over the last year.

After bouncing back from an initial downward move, stocks exhibited a lack of clear direction during Thursday's trading session. The major indices fluctuated around the break-even point before ultimately closing modestly lower. The Nasdaq decreased by 59.16 points, or 0.3 percent, settling at 17,691.63, while the S&P 500 fell by 12.42 points, or 0.22 percent, to 5,662.88. The Dow experienced an even smaller decline, slipping 11.31 points, or less than 0.1 percent, to 41,953.32. The S&P 500 is currently testing important support levels and is likely to consolidate near resistance at 5,746, with support positioned around 5,563. Additionally, the 14-period RSI is below the midpoint, indicating a continued negative bias.