The US stock market is likely to open trading session on Friday, 20 March, on a negative note, as futures of the three key averages — the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite — are trading lower by 0.4%, 0.3%, and 0.5%, respectively, in pre-market trade.
Wall Street’s benchmark S&P 500 and the blue-chip Dow have remained highly volatile throughout the week, as concerns mounted that persistently high crude oil prices could delay interest rate cuts until late 2026.
The US Federal Reserve flagged inflation risks in its recent meeting, indicating that price pressures are likely to persist throughout the year. This has further dampened hopes of near-term rate cuts, with policymakers signalling that easing will resume only once there is clear evidence of cooling inflation.
The US central bank left key benchmark rates unchanged for the second consecutive meeting, adopting a wait-and-watch approach amid tensions in the Middle East. It also signalled one rate cut this year; however, the timing of this move remains uncertain.
Both the S&P 500 and the Dow Jones are on track for a fourth consecutive week of losses. Earlier this week, the Dow Jones slipped to its lowest level since mid-November and has declined nearly 9% from its recent highs, just shy of entering correction territory.
Although tensions in the Middle East remain elevated, Brent crude futures fell to $105 per barrel earlier in the day after US Treasury Secretary Scott Bessent reportedly said Washington may soon lift sanctions on Iranian crude stored aboard tankers in an attempt to offset supply pressures caused by disruptions in the Strait of Hormuz.
Additional relief came after Israeli Prime Minister Benjamin Netanyahu reportedly said there would be no further attacks on Iran’s oil and gas infrastructure. Meanwhile, US President Donald Trump stated that he has no plans to deploy American ground troops to the Middle East, further easing pressure on crude oil prices, which are still on track for a weekly gain of 7%.
However, Saudi Arabia’s oil officials expect Brent crude prices to reach $180 per barrel if energy disruptions persist until late April, a risk that could prompt major central banks to hike policy rates.
FedEx shares jump 7% in pre-market trade
Shares of FedEx Corporation are trading 7% higher at $381.50 apiece in pre-market trade following the release of the company’s fiscal third-quarter results late Thursday. The company also raised its full-year profit forecast and signalled steady shipping demand despite geopolitical tensions and surging fuel costs.
Its adjusted earnings per share came in at $5.25 for the third fiscal quarter, surpassing the $4.17 average analyst estimate compiled by Bloomberg.
FedEx, often seen as a barometer of business activity, said global demand remained steady at the start of March despite the conflict in Iran, while fuel surcharges helped shield profits from rising fuel costs.
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