The S&P 500 Index is up 0.64% today, while the Dow Jones Industrial Average has increased by 0.59%, and the Nasdaq 100 Index is up 0.80%. March E-mini S&P futures rose 0.57%, and March E-mini Nasdaq futures climbed 0.78%. These gains are attributed to strong performances in chipmakers and travel stocks, supported by lower bond yields, with the 10-year T-note yield dropping to 4.20% after the ADP report showed a marginal employment increase of 9,000 for the four weeks ending February 28, indicating potential hiring slowdowns.
In contrast, crude oil prices rose over 1% following renewed Iranian attacks on energy infrastructure, particularly impacting operations in the UAE and Iraq. The International Energy Agency (IEA) reported that the ongoing conflict with Iran is disrupting 7.5% of global oil supply, estimating a cut of 8 million barrels per day this month alone. Goldman Sachs indicates prices could exceed $150 per barrel if current disruptions persist.
The two-day FOMC meeting begins today, with market expectations indicating that the Federal Reserve is likely to keep the federal funds target range unchanged at 3.50%-3.75%. Currently, there is only a 1% probability for a rate cut at this meeting.
