Energy & Inflation "Whammies" Hit Stocks into FOMC Interest Rate Decision

• Brent crude oil pushed above $108, and WTI crude oil is at $98, driven by Israeli airstrikes on Iran's gas infrastructure.
• February PPI came in hotter than expected (0.7% M/M vs. 0.3% estimate; 3.4% Y/Y vs. 2.9% estimate), with core PPI also exceeding estimates, indicating rising inflation risks.
• The FOMC rate announcement at 2:00 PM ET and Jerome Powell's press conference at 2:30 PM ET are key, with focus on Fed's communication regarding short-term and long-term inflation outlooks and dot plots.
• Market expectations for rate cuts have diminished, with possibly only one cut priced in for the year.
• Energy and Utilities are identified as resilient sectors and potential hedges, while the tech sector requires selective stock-picking, with Micron's earnings being a significant upcoming catalyst.

The market is facing 'whammies' from higher oil prices due to geopolitical tensions and hotter-than-expected PPI data, raising inflation risks ahead of the FOMC announcement. While no rate changes are expected, Fed messaging on inflation and future policy will be crucial. Energy is highlighted as a key hedge, and investors are advised to be selective in the tech sector, looking beyond the 'Magnificent Seven' for opportunities.