March 17, 2026

The major averages nudged higher for a second day shaking off higher global oil prices. President Trump's unsuccessful call for help in reopening the Strait of Hormuz and Iran continuing to fire into neighboring countries pushed crude oil prices up +2.64%. Nine of 11 sectors were higher with Healthcare (XLV) the weakest market group after Eli Lilly (LLY) dropped -5.93% on a downgrade to Hold on weight loss drug competition. Utilities (XLU) and Consumer Staples (XLP) were also lower. Energy (XLE) did the heavy lifting as Chevron (CVX) and Exxon Mobil (XOM) hit new highs. Consumer Discretionary (XLY), Technology (XLK) and Financial (XLF) also outperformed. The different indexes came off their highs late as investors positioned for the Federal Reserve's announcement on interest rates tomorrow afternoon, but volume was light. The DJIA closed the day up 46.85 points (+0.10%) at 46993.26, while the S&P 500 added 16.71 points (+0.25%) and settled at 6716.09. The NASDAQ tacked on 105.35 points (+0.47%) closing at 22479.53.

Breadth was positive with advancing issues beating declining issues 9:4 on the NYSE and 1.5:1 on the NASDAQ. Volume was below average with advancing volume 68% on the NYSE and 62% of the NASDAQ. The VIX dropped 1.14 (-4.85%) and closed at 22.37. Crude oil prices jumped 2.47 (+2.64%) and the April contract closed at $95.95 a barrel. Gold prices rose 3.50 (+0.07%) and finished at $5004.70 an ounce. Bitcoin (BTC) closed the session at $74,480.

Investors are nibbling at beaten up shares hoping that the major averages will bend but not break due to rising oil prices. Two days of gains, however, haven't brought the major averages up to MA resistance levels and they still trade below their respective 100-day MA. The Federal Reserve is expected to leave rates unchanged tomorrow and market participants will be waiting to hear whether Fed Chair Powell is more hawkish on inflation with rising fuel prices. Currently, the market is only pricing in a 50/50 chance of a rate cut in September so we're unlikely to see much of a reaction to Powell's press conference in the afternoon.

Earnings releases to watch for on Wednesday include: General Mills (GIS), Jabil (JBL), Macy's (M), Williams-Sonoma (WSM), Micron Technology (MU) and Five Below (FIVE).

Wednesday's Market Moving Economic Calendar: FOMC Meeting Announcement and Fed Chair Press Conference. Mortgage Apps, PPI-Final Demand, Factory Orders and EIA Petroleum Status Report.

*Charts of the various market timing components can be found by going to the Market Edge Home page and clicking on 'Market At A Glance', which is located on the right-hand side of the page just below the 'Market Recap' section.

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