US Stock Market Declines Amid Cautious Investor Sentiment, FedEx Shares Surge 7%

US Stock Market Outlook: Negative Opening Expected on Friday, 20 March

The US stock market is likely to open trading on a negative note on Friday, 20 March, with futures of the three key averages - the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite - trading lower by 0.4%, 0.3%, and 0.5%, respectively, in pre-market trade.

The S&P 500 and Dow Jones have remained highly volatile throughout the week, driven by concerns that persistently high crude oil prices could delay interest rate cuts until late 2026. The US Federal Reserve flagged inflation risks in its recent meeting, indicating that price pressures are likely to persist throughout the year, further dampening hopes of near-term rate cuts.

The US central bank left key benchmark rates unchanged for the second consecutive meeting, adopting a wait-and-watch approach amid tensions in the Middle East. While policymakers signalled one rate cut this year, the timing of this move remains uncertain. Both the S&P 500 and the Dow Jones are on track for a fourth consecutive week of losses, with the Dow Jones slipping to its lowest level since mid-November and declining nearly 9% from its recent highs.

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Crude oil prices have eased slightly, with Brent crude futures falling to $105 per barrel after US Treasury Secretary Scott Bessent reportedly said Washington may soon lift sanctions on Iranian crude stored aboard tankers. Additional relief came after Israeli Prime Minister Benjamin Netanyahu reportedly said there would be no further attacks on Iran's oil and gas infrastructure.

FedEx Corporation shares jumped 7% in pre-market trade, trading at $381.50 apiece, following the release of the company's fiscal third-quarter results. The company raised its full-year profit forecast and signalled steady shipping demand despite geopolitical tensions and surging fuel costs. FedEx, often seen as a barometer of business activity, reported adjusted earnings per share of $5.25 for the third fiscal quarter, surpassing the $4.17 average analyst estimate compiled by Bloomberg.