[New York Stock Market] Oil Prices Fall Ahead of FOMC... Nasdaq Closes Up Over 1%

Oil Prices Fall Below $100

Most Tech Stocks Close Higher

FOMC Meeting Begins March 17-18... Rate Hold Expected

June 16 (local time), New York Stock Exchange. Photo by Yoonjoo Hwang

On March 16 (local time), all three major U.S. stock indices closed higher as investor sentiment improved amid a decline in international oil prices. With the war involving Iran continuing for more than two weeks, the markets have been reacting sensitively to fluctuations in international oil prices.

On this day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,946.41, up 387.94 points (0.83%) from the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, rose by 67.19 points (1.01%) to finish at 6,699.38, while the tech-heavy Nasdaq Index surged by 268.82 points (1.22%) to close at 22,374.18.

The market closed higher, focusing on the decline in international oil prices. There were two news items that drove oil prices down. First, oil prices fell after U.S. Treasury Secretary Scott Bessent stated in a CNBC interview that the United States is allowing Iranian oil tankers to pass through the Strait of Hormuz.

Additionally, The Wall Street Journal, citing sources, reported that the United States will soon announce an international coalition to escort ships passing through the Strait of Hormuz. This report also contributed to the drop in oil prices.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for April delivery fell by 5.28% to close at $93.50 per barrel. Brent crude also dropped below the $100 mark during the session, finishing down to the $99 level.

Richard Saperstein of Treasury Partners commented, "While it is possible that oil prices may exceed $100 per barrel in the short term, I do not expect them to be sustained at this level in the long term," adding, "As tensions ease and crude production returns to pre-crisis levels, oil prices will decline."

However, U.S. President Donald Trump hinted to reporters that the coalition for the Hormuz escort operation has not been fully assembled yet, which led to a brief rebound in stock prices.

David Krakauer, Vice President of Portfolio Management at Mercer Advisors, said, "It seems the market feels President Trump is keeping the market's long-term interests in mind," and evaluated, "There is still a certain degree of reliance on the belief that if things start to worsen, President Trump could end the situation at any time if he truly desires."

Oil refining stocks ended mixed. ExxonMobil rose by 0.59%, while Chevron fell by 0.16%. Other energy stocks such as Occidental Petroleum (-1.02%), Diamondback Energy (-0.02%), and APA (1.04%) also showed mixed performance.

On the other hand, gains in technology stocks were notable. Nvidia rose by 4.69% on expectations that it will generate at least $1 trillion in revenue from artificial intelligence (AI) chips by the end of 2027. Other significant increases included Apple (1.19%), Microsoft (1.07%), Amazon (2.24%), Alphabet (1.22%), and Meta (2.40%).

Market experts continue to closely monitor the tense situation in the Strait of Hormuz. Chris Larkin of Morgan Stanley's E*Trade remarked, "If conditions in the Middle East do not visibly deteriorate, the market may feel some relief, but unless a clear solution emerges to lower oil prices, the stock market's rebound could be short-lived."

Mislav Matejka of JPMorgan Chase stated that due to oil price volatility caused by geopolitical tensions, central banks may not need to implement tightening policies, and investors should consider buying when stock prices weaken.

Meanwhile, the Federal Reserve will begin its Federal Open Market Committee (FOMC) meeting starting tomorrow. With attention focused on the Fed's response to the war with Iran, market participants largely expect the central bank to keep its benchmark interest rate unchanged.

Krishna Guha of Evercore analyzed, "It is highly likely that policymakers will avoid a significant rate hike, reflecting weak employment indicators that highlight the need to balance the uncertainty over the duration of the energy shock with inflation and labor market risks."

This content was produced with the assistance of AI translation services.