Investors Await Fed's Views On Inflation and Future Rate Path Amid Higher Oil Prices

Barry Adams
18 Mar, 2026
New York City

Stocks extended this week's advance ahead of the Fed's rate decisions as investors reviewed the fast-changing situation in the Middle East. 

The S&P 500 Index gained 0.5%, and the tech-heavy Nasdaq Composite advanced 0.6% as tech stocks led gainers for the third consecutive day in a row.

Crude oil prices bounced around their recent highs amid uncertainty about the resumption of energy product shipments through the Strait of Hormuz. 

The Trump administration signaled that the U.S. military is prepared to offer support to cargo ships traversing through the narrow channel, lifting hopes that shipments to India, China, South Korea, and Japan are likely to resume in the near future. 

Texas crude oil prices decreased by 1.1% to $95.16 a barrel as the U.S. abandoned its plan to form an international coalition to secure safe passage through the Strait of Hormuz. 

Despite the Trump administration's claims of success in its military attacks on Iran, NATO allies pushed back on forming a coalition to provide a safe passage through the Strait of Hormuz.

The Federal Reserve is widely anticipated to hold the Fed Funds rate range between 3.5% and 3.75%, despite rising inflationary pressures. 

Investors are awaiting Federal Reserve Chair Powell's comments on the impact of higher energy prices on the monetary policy outlook. 

 

U.S. Movers 

Lululemon Athletica decreased 0.8% to $157.78 after the athletic apparel retailer reported its quarterly results and issued an outlook for the current fiscal year. 

The specialty apparel retailer reported better-than-expected fiscal fourth-quarter results, but the company's fiscal 2006 sales outlook between $11.35 billion and $11.50 billion fell short of market expectations. 

DocuSign advanced 1.3% to $48.40 after the software company reported higher-than-expected fiscal fourth-quarter results. 

The company's outlook for the current quarter and fiscal year also surpassed market expectations.