Stock futures are flat as traders look ahead to Federal Reserve interest rate decision: Live updates – CNBC
A trader works on the floor of the New York Stock Exchange as a screen broadcasts a press conference by Federal Reserve Chair Jerome Powell following the Fed rate announcement, March 18, 2026.
Brendan McDermid | Reuters
Stocks sold off on Wednesday after new U.S. economic data as well as comments from the Federal Reserve chief stoked concerns about persistent inflation in the country.
The Dow Jones Industrial Average lost 768.11 points, or 1.63%, ending at 46,225.15. The index reached a new low for the year and closed below its 200-day moving average. With its month-to-date drop now at more than 5%, the Dow is on pace for its worst month since 2022. The S&P 500 fell 1.36% to 6,624.70, while the Nasdaq Composite dropped 1.46% and ended at 22,152.42.
The Fed kept its fed funds rate in a range between 3.5% to 3.75%, saying in its post-meeting statement that the “implications of developments in the Middle East for the U.S. economy are uncertain.”
“The forecast is that we will be making progress on inflation, not as much as we had hoped, but some progress on inflation,” Fed Chair Jerome Powell said during a press conference.
The central bank signaled that it still expects one cut this year, however.
Wholesale inflation heating up
The producer price index — which tracks the change in wholesale prices — rose 0.7% in February, well above the 0.3% that economists polled by Dow Jones had estimated. The report shows that inflation was already in a precarious spot prior to the Iran war breaking out — an event that has heightened stagflation fears amid rising oil prices.
“The hotter-than-expected number is specific to tariffs,” Todd Schoenberger, chief investment officer at CrossCheck Management, said, noting that metals, industrial inputs and manufacturing costs are all seeing higher prices. “This is structural inflation, not temporary, and is likely going to impact monetary policy deep into the third quarter.”
“Add in the hotter energy prices we’ve seen since the Iran War began, which have yet to show in these reports, and Wall Street is bracing for rapidly rising prices that will clearly flow down to the consumer level,” Schoenberger said.
International benchmark Brent crude futures rose 3.83% to settle at $107.38 per barrel. U.S. oil prices were trading at elevated levels as well, with West Texas Intermediate futures closing marginally higher at $96.32 per barrel.
The moves come after Israel reportedly struck Iran’s largest gas processing facility located in Bushehr Province. Iran has also threatened attacks on oil facilities in Saudi Arabia, the United Arab Emirates and Qatar. The country this week already launched a new wave of attacks on the UAE’s energy infrastructure, sparking fears about crude and fuel shipping.
“I think we’re in a higher volatility regime,” said Anshul Sharma, chief investment officer at Savvy Wealth.
“If oil stays elevated here … we know that’s going to filter through into the economy,” he continued, noting that a persistent energy shock flowing through to inflation and growth starting to slow would be a “dangerous combination.”
“It’s going to make the Fed’s job harder in terms of balancing their mandates,” he said.
