Dow jumps 398 points as oil tops $100, Fed decision in focus

• Brent crude oil climbed 1.6% above $100 per barrel amid fears of supply disruption through the Strait of Hormuz following US-Israel attacks on Iran and reports of a senior Iranian security official killed in airstrikes
• AI and technology stocks supported market gains, with Nvidia and other chipmakers advancing while airline stocks like Delta (up 4.7%) and American Airlines (up 4.86%) rebounded despite higher fuel costs
• Traders now expect only one 25-basis-point Fed rate cut in 2026, down from two previously, as rising oil prices threaten to push inflation higher and complicate the central bank's monetary policy outlook

Market Summary: Dow Gains 398 Points Amid Oil Surge and Fed Watch

Market Performance:

U.S. equities extended Monday's rally on Tuesday, March 17, 2026, with the Dow Jones Industrial Average climbing 398 points (+0.85%). The S&P 500 and Nasdaq 100 both gained 0.6%, continuing a technology-driven rebound that marked the S&P 500's strongest single-day gain in over a month.

Energy Markets:

Oil prices surged above $100 per barrel, with Brent crude rising 1.6%. The spike stems from escalating tensions in the Middle East following U.S.-Israel attacks on Iran and concerns over potential disruptions through the Strait of Hormuz, a critical global shipping route. Geopolitical risks intensified after reports confirmed Iran's security chief Ali Larijani was killed in Israeli airstrikes.

Key Sector Movements:

• Technology/AI: Nvidia and other AI-linked stocks supported market sentiment, with Nvidia highlighting significant revenue opportunities for its AI chips. AMD rose 0.56% and Broadcom gained 0.36%.
• Airlines: Despite rising fuel costs, airline stocks rallied. Delta Air Lines surged 4.7% after raising revenue guidance, while American Airlines jumped 4.86%.
• Mobility: Uber climbed 5.2% following its announcement to launch robotaxis in 28 cities next year using Nvidia's autonomous driving technology.

Fed Policy Outlook:

Investors await Wednesday's Federal Reserve decision, with rates expected to remain unchanged. Market expectations have shifted dramatically, now pricing in only one 25-basis-point cut this year versus two previously anticipated. Rising oil prices threaten to complicate the Fed's inflation outlook and limit monetary easing flexibility.

Investment Implications:

While U.S. markets show resilience supported by strong earnings, analysts warn of increasing risks from geopolitical instability and potential inflation pressures from elevated energy prices.