S&P tumbles on Fed cues
The S&P 500 slid 1.36% on March 18, closing at 6,624.70 after a hotter‑than‑expected Producer Price Index and cautious Fed remarks rattled markets. (benzinga.com) The Federal Reserve held rates steady yesterday and signaled gradual easing later this year in its dot plot — that uncertainty plus surging oil is keeping volatility high. (financialexpress.com)
U.S. producer prices jumped 0.7% in February — the largest monthly rise since July — topping economists’ 0.3% forecast and lifting the 12‑month PPI to 3.4%. (whtc.com) The FOMC’s “dot plot” now implies a single policy rate cut in 2026, with the median participant’s year‑end federal funds rate roughly 3.4%. (bloomberg.com) Chair Jerome Powell told reporters the Fed still sees inflation “somewhat elevated,” citing tariff‑driven goods inflation and a recent surge in energy prices, and the Fed’s materials show total PCE up about 2.8% year‑over‑year and core PCE roughly 3.0% as of February. (federalreserve.gov) Longer‑term yields climbed: the U.S. 10‑year Treasury yield rose to about 4.27% on March 18, reflecting repricing after the inflation print and energy shock. (tradingeconomics.com) Volatility surged alongside equities — the Cboe VIX jumped into the low‑to‑mid‑20s while the Dow plunged more than 750 points to a new 2026 closing low on the same session. (finance.yahoo.com) Brent crude shot above $110/bbl, trading intraday near $111.90 after reported strikes damaged Qatar’s Ras Laffan LNG complex and other Gulf energy sites, stoking immediate supply‑risk repricing. (tradingeconomics.com) Market‑implied odds showed near‑certainty the Fed would hold at the March meeting (CME FedWatch ~99%), but futures and the dot plot together kept pricing only a single cut later in 2026 rather than multiple reductions. (cbsnews.com)
