US stocks fall as PPI inflation jumps, Dow Jones down 169 points

• Annual PPI climbed 3.4%, well above the 2.9% forecast, pushing expected Fed rate cuts from December 2026 to at least April 2027
• Oil prices surged with Brent crude rising over 4% to $108.3 per barrel due to attacks on Iranian energy facilities and Strait of Hormuz disruptions
• Markets await Fed Chair Powell's remarks for guidance on how policymakers will respond to inflation risks from elevated energy prices and geopolitical uncertainty

Summary

Market Performance:

US stocks opened lower on Wednesday, March 18, 2026, with the Dow Jones falling 169 points (0.36%), S&P 500 declining 0.31%, and Nasdaq 100 dropping 0.26%. The downturn followed stronger-than-expected inflation data and rising oil prices ahead of the Federal Reserve's policy decision.

Key Economic Data:

The Producer Price Index (PPI) rose 0.7% in February, significantly exceeding the 0.3% forecast. Annual producer prices climbed 3.4%, well above the 2.9% expectation. The hot inflation print has dramatically shifted rate cut expectations, with traders now pricing in a 25-basis-point cut only by April 2027—pushed back from December 2026 prior to the data release.

Energy Markets:

Oil prices surged amid geopolitical tensions, with West Texas Intermediate rising over 2% to $97.68 per barrel and Brent crude jumping more than 4% to $108.30 per barrel. Attacks on Iranian energy facilities and Strait of Hormuz disruptions fueled supply disruption fears. President Trump's comments about not needing NATO assistance for shipping routes added to uncertainty.

Corporate Movers:

Micron Technology gained 0.29% ahead of earnings, while SanDisk rose 1.6%. Drone software company Swarmer surged 40%. Travel stocks including Delta, American Airlines, and Carnival declined. Lululemon advanced 2% despite weak guidance, and Macy's jumped 5.6% on expectations of easing tariff pressures.

Market Outlook:

Investors await the Fed's policy decision and Chair Jerome Powell's commentary on inflation risks tied to energy prices and geopolitical uncertainty. Markets remain cautious as stagflation concerns and elevated volatility dominate sentiment.