Market Preview: Federal Reserve Meeting, Oil Surge Past $100, and Micron (MU) Earnings

TLDR Federal Reserve convenes Wednesday with expectations of maintaining rates between 3.5%–3.75%, focus shifts to Powell’s commentary Crude oil surged past $100 per barrel following Iran conflict that has disrupted Strait of Hormuz shipping routes Micron Technology delivers quarterly results Wednesday following remarkable stock surge of over 300% in past year Major earnings releases include FedEx, Dollar Tree, Alibaba, and multiple retail companies Goldman Sachs forecasts Q4 oil averaging $93/barrel if Strait of Hormuz blockade continues for two months Equity markets extended their losing streak to three consecutive weeks as escalating tensions in Iran drove crude oil to heights last witnessed during the 2022 energy emergency. The S&P 500 declined 1.6% for the week. The Dow Jones Industrial Average shed 2%. The Nasdaq Composite retreated 1.3%. E-Mini S&P 500 Mar 26 (ES=F) Investors now face a calendar-packed week featuring a Federal Reserve policy announcement, numerous corporate earnings reports, and Nvidia’s signature developer conference. The Federal Open Market Committee convenes Wednesday for its latest monetary policy deliberation. The benchmark federal funds rate currently stands at 3.5% to 3.75%. Market participants are nearly unanimous in expecting no change to current policy. Chairman Jerome Powell will conduct a press briefing following the announcement. Analysts suggest this commentary could prove more significant than the rate decision itself. Powell faces the task of addressing internal disagreements among Fed officials. One faction advocates for additional rate reductions citing employment market weakness. Another group expresses concern about potential inflation acceleration driven by surging energy costs. This marks Powell’s penultimate scheduled press conference before his chairmanship concludes in May. Oil and the Strait of Hormuz The Iranian conflict has entered its third week with no resolution in sight. The Strait of Hormuz — a narrow 21-mi...