Today's 5 Major Financial Market Events: Trump Demands Reopening of Strait of Hormuz, Nvidia GTC Conference

Investing.com - Major U.S. stock index futures edged higher as traders prepare for potentially market-moving events this week. The ongoing Iran conflict continues to drive oil prices higher and raise inflation concerns. Nvidia’s major developer conference may offer new insights into the future of AI prosperity, while the Federal Reserve will be the focus of upcoming global central bank rate decisions.

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1. Futures Rise

U.S. stock index futures rose on Monday as investors assess the ongoing U.S.-Israel offensive against Iran, now entering its third week.

As of 04:19 ET (08:19 GMT), Dow futures were up 141 points, or 0.3%, S&P 500 futures up 33 points, or 0.5%, and Nasdaq 100 futures up 131 points, or 0.5%.

Last week, major Wall Street indices declined amid a sharp surge in oil prices, with concerns over global supply disruptions. The Strait of Hormuz, a critical waterway in southern Iran, sees one-fifth of the world’s oil tankers passing through, but Tehran has effectively closed it, restricting energy flows and threatening the global economy.

Despite U.S. measures to ease supply concerns, including easing some sanctions on Russian oil, crude prices continue to rise. Gasoline retail prices have also increased, factoring into overall inflation data and becoming a key concern for American voters ahead of the crucial 2026 midterm elections in November.

ING analysts noted in a report that weekend attacks on Halul Island (a major oil export hub for Iran) pose further supply risks. However, they pointed out that most of the energy infrastructure on the small island off Iran’s coast remains unaffected.

2. Trump Intensifies Pressure for Reopening the Strait of Hormuz

Meanwhile, former President Donald Trump called on seven countries to help Washington secure the Strait of Hormuz, a vital waterway carrying one-fifth of the world’s oil supply.

However, Trump did not specify whether any countries agreed to his request during comments to reporters aboard Air Force One on Sunday.

He also told the Financial Times that NATO members should assist in reopening the strait, adding that if these countries do not respond or refuse to help Washington, “it will be very bad for NATO’s future.”

Trump specifically named China, stating that if Beijing does not use its influence to lift the blockade, he might cancel the summit scheduled for April with China’s top leadership. The New York Times reported that oil tankers headed to China have been allowed through the strait, while others have been attacked.

3. Oil Prices Climb

Oil prices rose on Monday amid volatile trading, with markets remaining highly alert to potential supply disruptions in the Middle East. After Trump’s call for other countries, including China, to help restore shipping through the Strait of Hormuz, crude briefly declined.

U.S. officials continue to claim that the Iran conflict will end soon, while Tehran asserts it remains strong and ready to defend itself.

Additionally, the International Energy Agency announced over the weekend that it will begin releasing 411.9 million barrels from emergency reserves to offset potential supply shocks.

As of 04:06 ET, global benchmark Brent crude futures rose 2.7% to $105.90 per barrel, and U.S. WTI crude futures increased 2.0% to $98.75 per barrel. Oil prices earlier surged by as much as 3%, then narrowed gains and traded flat for a time.

4. Nvidia GTC Conference Approaching

The Nvidia GTC conference will be held from March 16 to 19 in San Jose, California. Investors are eager to learn what new products the company plans to launch to stay competitive in an increasingly fierce market.

This year, Jensen Huang will take the stage as Nvidia strives to maintain its long-standing lead in the AI race and fend off competitors in the rapidly growing AI-accelerated chip sector. Besides rivals like AMD and Intel, Nvidia now faces challenges from major tech companies such as Alphabet’s Google, which are actively developing their own AI-optimized processors.

The emergence of “reasoning” in AI—where AI robots perform tasks on behalf of humans—poses another challenge for Nvidia. These models often run on chips different from Nvidia’s traditional products, and clients like OpenAI and Meta Platforms (Facebook’s parent company) have indicated they may release their own versions of AI processors.

In December, Nvidia spent $17 billion to acquire Groq, a startup specializing in affordable, fast reasoning workloads. Jensen Huang recently said he would demonstrate how to integrate Groq’s technology into Nvidia’s CUDA platform.

Vital Knowledge analysts noted in a report that a major expected outcome of the event is Nvidia launching a new reasoning-focused chip, incorporating intellectual property gained from the recent Groq acquisition.

5. Federal Reserve Decision in Focus

Beyond the tech sector, investors are preparing for a series of central bank rate decisions this week.

The highlight will be the Federal Reserve, widely expected to keep borrowing costs unchanged at its two-day meeting ending Wednesday.

Fed Chair Jerome Powell will step down in May, and he will likely use his final few press conferences to provide updates on the U.S. labor market and inflation.

Recent employment data has been significantly weaker than expected, highlighting potential instability in the job market. Meanwhile, the Iran conflict could intensify inflationary pressures. These trends may put the Fed in a dilemma: cutting rates could support employment but risk further inflation, while raising rates could curb price growth but harm employment.

Markets will closely watch for any clues on how the Fed plans to navigate these conflicting forces in the coming months.

This article was translated with the assistance of AI. For more information, see our Terms of Use.