By William Collins, consultant in stock markets – Eurasia Business News, March 18, 2026. Article no 2052
US stock markets closed sharply lower on March 18, 2026, with the Dow Jones Industrial Average falling significantly after Federal Reserve Chair Jerome Powell expressed concerns over persistent inflation pressures. Powell highlighted slower-than-expected inflation progress and risks from rising oil prices due to Middle East tensions.
Index Performance
The Dow tumbled more than 750 points, marking a new closing low for 2026 amid the sell-off. S&P 500 and Nasdaq futures indicated declines around 0.3-0.5% intraday, pressured by higher wholesale inflation data and Powell’s remarks.
Powell’s Key Comments
During the post-FOMC press conference, Powell noted core PCE inflation holding at 3.0% with no net progress, exacerbated by oil surges from the Iran conflict nearing $110 Brent. The Fed held rates steady at 3.5%-3.75%, signaling caution on future cuts.
However, the updated U.S. economic projections show the central bank sees rates falling to 3.4% by the end of the year, suggesting at least one rate cut this year.
Contributing Factors
Unexpectedly high PPI data (+0.7%) fueled fears, alongside West Texas Intermediate crude topping $99. Geopolitical risks from Iran’s gas field strike amplified inflation worries, overriding earlier market rebounds.
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Gold and Silver prices
Gold and silver prices edged lower on March 18, amid cautious trading ahead of the Federal Reserve’s policy decision and mixed global cues from oil volatility. Spot prices reflected minor declines despite safe-haven demand from geopolitical tensions.
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The gold market is not seeing much reaction to the Federal Reserve’s more nuanced stance. Spot gold last traded at $4,887.90 an ounce, down more than 2% on the day.
International spot gold closed around $5,000 per ounce, down 0.1%, while silver fell 0.4% to about $79 per ounce.
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© Copyright 2026 – Eurasia Business News. Article no. 2052
Eurasia Business News 