Market Summary: What Happened Yesterday and What Awaits us Today, (March 19):

Market Summary: What Happened Yesterday and What Awaits us Today, (March 19):Markets shake after Powell's warnings… Oil fuels inflation and puts pressure on global stocks

US markets experienced a sharp decline at the close of trading on Wednesday, after Federal Reserve Chairman Jerome Powell warned that the significant rise in oil prices could threateninflation expectations, following the central bank's decision to keep interest rates unchanged.

The Dow Jones Industrial Average closed down about 1.6%, losing nearly 770 points.

The Nasdaq Composite Index also fell by 1.5%, and the Standard & Poor's 500 Index declined by about 1.4%, amid widespread selling that affected most stocks, especially major technology companies.

This came after the Federal Reserve decided to keep interest rates within the range of 3.50% to 3.75%, in a vote that showed limited division within the committee.

Powell noted that the repercussions of the conflict in the Middle East remain unclear, warning of the possibility of an energy price shock that could persist for some time and affect the economy and inflation.

At the same time, market pressure increased following the release of producer price data, which showed that inflation rose more than expected in February, reinforcing concerns about continued inflationary pressures and delaying any potential interest rate cut.

In the bond market, the yield on 10-year US Treasury bonds rose to about 4.26%, indicating tighter financial conditions, which is reflected in borrowing costs for individuals and companies.

In energy markets, oil prices continued to rise, with West Texas Intermediate crude climbing to around $98.60 a barrel and Brent crude to around $109.60, supported by escalating geopolitical tensions in the Middle East.

On the other hand, gold prices fell by 3% to around $4,855 an ounce, and silver also declined by about 4.6%.

In contrast, the US dollar index rose, while Bitcoin fell to $71,000 after approaching $75,000 inovernight trading.

In the stock market, major technology companies led losses, with Amazon shares falling about 2.5%, amid a broad decline in major company shares. Some stocks recorded mixed performance: Macy's shares rose, while General Mills shares declined.

Market Outlook

Global markets are expected to remain volatile during today's session, with a clear tendency towards selling pressure, given the continued rise in oil prices and the inflationary effects weighing on investor sentiment.

The cautious tone adopted by the Federal Reserve regarding the future of monetary policy may reduce bets on near-term interest rate cuts, which supports the relative strength of the dollar.

Meanwhile, geopolitical tensions in the Middle East remain a key driver of market movements, as any further escalation could heighten volatility, with gold and oil likely to continue trading at elevated levels amid sharp price swings.