Wall Street ends down as traders see no rate cuts before 2027
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Traders working on the floor of the New York Stock Exchange on March 19, in New York City.
PHOTO: AFP
- Wall Street declined amid inflation worries fuelled by rising oil prices and ongoing Middle East tensions.
- Central banks, including the Fed, held rates steady, citing economic uncertainty and inflation risks, as stated by Mike Dickson.
- Micron and Tesla shares fell; jobless claims decreased, and the S&P 500, Nasdaq, and Dow were below their 200-day averages.
AI generated
NEW YORK - Wall Street ended lower on March 19, with declines in Micron Technology and Tesla, as worries about inflation stemming from soaring oil prices left investors pessimistic about the potential for future interest rate cuts.
Investors focused on warnings by Federal Reserve chairman Jerome Powell on March 18 that the economic outlook remains uncertain amid a US-Israeli war with Iran that has sent energy prices soaring and created fears of inflation. The Fed left rates unchanged, as expected.
Interest rate futures suggest traders see little chance of interest rate cuts before mid-2027, according to the CME’s FedWatch tool. Echoing the Fed, the Bank of England and European Central Bank held their interest rates steady and pointed to uncertainty arising from the Middle East conflict.
“The market is digesting a little bit more of Powell and what some other central banks said overnight, that this is a real inflation risk,” said Mr Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.
Brent crude was up but well off session highs of US$119 a barrel after Iran attacked energy targets overnight in the Middle East, leading the US government to take steps to expand supply.
Micron Technology dropped 3.8 per cent after the memory chipmaker’s quarterly forecast failed to impress investors who have sent its shares soaring more than 50 per cent in 2026 on strong demand related to artificial intelligence.
Nvidia, the world’s most valuable company, lost 1 per cent. Tesla slid 3.2 per cent. The National Highway Traffic Safety Administration escalated its probe into 3.2 million Tesla vehicles with Full Self-Driving driver assistance on concerns that the system may fail to detect or warn drivers in poor visibility.
The S&P 500 declined 0.27 per cent to end the session at 6,606.49 points.
The Nasdaq declined 0.28 per cent to 22,090.69 points, while the Dow Jones Industrial Average declined 0.44 per cent to 46,021.43 points.
Eight of the 11 S&P 500 sector indexes declined, led lower by materials, down 1.55 per cent, followed by a 0.87 per cent loss in consumer discretionary.
The S&P 500, Nasdaq and Dow were below their 200-day moving averages, underscoring a loss of momentum in the market.
The S&P 500 has lost more than 3 per cent in 2026 and is trading at four-month lows.
Prices of precious metals declined, with miners Newmont and Freeport-McMoRan down 6.9 per cent and 3.3 per cent respectively.
Data on March 19 showed weekly jobless claims unexpectedly fell last week, pointing to stable labour-market conditions and a rebound in job growth in March.
Declining stocks outnumbered rising ones within the S&P 500 by a 1.4-to-one ratio.
The S&P 500 posted 17 new highs and 26 new lows; the Nasdaq recorded 30 new highs and 276 new lows.
Volume on US exchanges was 20 billion shares traded, about average with the 20 most recent sessions. REUTERS
