US Stock Market Futures Steady Amid Rising Oil Prices, Inflation Concerns Ahead of Key Economic Data

US Stock Market Outlook: Flat Opening Expected on Friday, March 13

The US stock market is expected to open flat on Friday, March 13, as investors continue to monitor tensions in the Middle East and await key inflation data that could influence the monetary policy outlook of the US Federal Reserve.

Market Indicators Futures of the three key averages - the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite - were trading largely flat, up around 0.10%, in pre-market trade. This follows a broad sell-off in the previous session, where all three indices shed over 1.5%, with most sectors suffering deep losses, except for defence and energy stocks.

Oil Prices Remain Elevated The conflict in the Middle East has entered its 14th day, with Iran intensifying attacks on Dubai and energy infrastructure across the Gulf region, keeping crude oil prices elevated. Brent crude oil, the international standard, remained above $100 per barrel, with prices earlier this week rising to $120 per barrel.

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Economic Data and Central Bank Meeting A slew of economic indicators is expected to be released on Friday, including consumer sentiment, durable goods orders, job openings, labor turnover data, and the broad-based personal consumption expenditures (PCE) report, the Fed's preferred inflation gauge. The US Federal Reserve is scheduled to meet on March 18, where policymakers are widely expected to keep interest rates unchanged.

Monetary Policy Outlook Traders are currently pricing in only one 25-basis-point rate cut, possibly in September, as the Fed continues to monitor inflation pressures. The International Energy Agency has warned that the war with Iran could create the largest-ever oil supply disruption, fueling fears of rising inflation pressures.