US Stock Market Outlook: Lower Opening Expected on March 17

Market Indicators

The US stock market is likely to open lower on March 17 as futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are trading lower by 0.3%, 0.2%, and 0.4%, respectively, in pre-market trading.

Crude Oil Prices

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Crude oil prices have resumed their winning run, fueling inflation concerns. Brent futures have moved back above $100 per barrel and reached a day's high of $105 per barrel in today's session.

Global Economic Tensions

The ongoing US-Israel conflict with Iran and counterattacks have entered their third week, with no signs of de-escalation. This has disrupted energy supplies, with only a tiny fraction of vessels able to pass through the Strait of Hormuz, which normally handles 20% of global crude and LNG.

US Federal Reserve Decision

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The US Federal Reserve will announce its policy decision on March 18, where policymakers are widely expected to hold rates steady. Traders anticipate only one 25-basis-point cut, possibly in September, following the February inflation data that came in line with forecasts.

Economic Outlook

Higher energy prices have impacted Asian stocks the most in March, but US stocks have held up better on expectations that the economic repercussions will be less severe. The Fed began the year by leaving rates unchanged in the range of 3.5% to 3.75% at its January meeting.