Stock Market Today, March 18: Fed Leaves Rates Unchanged, and Markets Fall on Inflation Fears

The S&P 500 (^GSPC 1.36%) fell 1.36% to 6,624.70, the Nasdaq Composite (^IXIC 1.46%) lost 1.46% to 22,152.42, and the Dow Jones Industrial Average (^DJI 1.63%) dropped 1.63% to 46,225.16 after the Federal Reserve highlighted inflation concerns.

Market movers

Energy stocks pushed upwards in intraday trading as oil prices spiked. Chevron (CVX +0.32%) inched up 0.32% to finish at $198.61, but Exxon Mobil (XOM 0.78%) could not hold its gains, closing down 0.77% at $157.59. **Macy’s **(M +4.82%) surged on strong sales and Q4 earnings that beat expectations.

Cloudflare (NET +6.59%) soared on news of a potential stablecoin partnership with crypto exchange Coinbase (COIN 3.78%). Memory chip giant Micron Technology (MU +0.21%) fell in after-hours trading, despite a Q1 earnings beat. SanDisk (SNDK +4.64%) rose during the day on continued AI memory optimism, but slipped after market close. Advanced Micro Devices (AMD +1.70%) edged higher on a new Samsung chip partnership.

What this means for investors

As expected, the Fed held interest rates steady today, signaling just one cut this year. Chair Jerome Powell stressed that rate cuts would not happen until inflation fell. Today’s Producer Price Index data came in higher than expected, further pressuring stocks.

Climbing oil prices added to investor worries, as Brent crude topped $110 per barrel. Gasoline prices reached $3.84 a gallon, the highest since Sept. 2023. In addition to the immediate upswing in energy prices, Citadel Securities’ analysts warn a prolonged conflict in Iran could pose broader growth risks. Investors may see further downside in stocks if traffic flow remains restricted through the Strait of Hormuz soon.