Fed Keeps Rates Steady Amid Iran Conflict, Inflation Worries

0:00On March 19th, Federal Reserve Chair Jerome Powell warned of an uncertain economic outlook due to the U.S. Israeli conflict with Iran, which has, driven of energy prices and sparked inflation worries. As expected, the Fed kept interest rates unchanged, and traders now see slim odds of cuts before mid-20027. Other major central banks followed suit, with the Bank of England and European Central Bank holding rates steady and citing the same Middle East, tensions. Attacks on key gas fields in Iran and Qatar, plus oil refineries in Saudi Arabia and Kuwait, pushed Brent Crude above $119 a. Barra before prices pulled back. Investors reacted to Powell's comments by highlighting inflation risks from the energy spikes. Shares in micron technology fell after a disappointing quarterly forecast, despite earlier gains from AI demand. In Vidya and Tesla also dropped, the latter on an escalated safety probe into its full self-driving system for 3.2 million vehicles.

1:01Major indexes closed lower, with the S&P 500 down 0.28% at 6,6.20. The NASDAQ composite shed 0.28% to 22,090.22, and the Dow Jones industrial average lost 0.45% ending at 46,018.20. All three dipped below their 200-day moving averages, signaling fading momentum. Thursday's data offered a bright spot, as weekly jobless claims fell unexpectedly, showing a steady labor market and rebounding job growth. Markets will stay focused on how these geopolitical strains and inflation pressures unfold.