Market Update

US Stocks Move Lower Amid Oil Supply Concerns

Indices:

• Dow Jones Industrial Average: -0.73% to 47,357.79
• S&P 500: -0.29% to 6,762.10
• Nasdaq Composite: -0.15% to 22,662.71

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Oil Prices Soar

The International Energy Agency (IEA) agreed to release 400 million barrels of oil from its strategic reserves, in response to intensifying hostilities in the Middle East. Oil prices have risen, with WTI and Brent crude futures up over 5%. Iran's military command warned that crude prices could hit $200 per barrel, more than double their current level.

Inflation Remains Moderate

The Labor Department's Consumer Price Index (CPI) showed that inflation remained moderate in February, matching analyst expectations. Annual CPI growth is now within half a percentage point of the US Federal Reserve's 2% target.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Financials Fall on Lending Concerns

Financials were down the most among the 11 major sectors of the S&P 500, after reports that JPMorgan Chase is tightening its lending to private-credit groups. Ares Management and Apollo Global fell 4.2% and 1.8%, respectively.

Oracle Shares Rise on Upbeat Revenue Forecast

Oracle shares jumped 8.5% after the company provided better-than-anticipated revenue guidance, citing expectations that the artificial intelligence-related spending boom will extend through 2027.

Economic Outlook

The Federal Reserve is widely expected to let its key interest rate stand at its upcoming policy meeting, amid concerns over potential stagflation. The "transitory" narrative may return, as policymakers weigh the possibility of spiking prices against signs of a softening jobs market.