US stock market today: Dow, S&P 500 futures slip as Brent crude oil prices rebound to $105

The US stock market is likely to open lower in Tuesday's trading session, March 17, as futures of the three key averages—the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—are trading lower by 0.3%, 0.2%, and 0.4%, respectively, in pre-market trading after crude oil prices resumed their winning run, fueling inflation concerns.

Wall Street is also cooling from a tech-driven rebound in the previous session that saw the benchmark S&P 500 log its biggest one-day jump in over a month.

On Monday, crude showed some pullback, only to rebound later, with Brent futures moving back above $100 per barrel in today’s session to reach a day’s high of $105 per barrel after US President Donald Trump suggested that some countries are “less than enthusiastic” about a plan to help escort oil tankers through the Strait of Hormuz.

Trump on Saturday urged countries that rely on oil carried through the Strait of Hormuz to step up and take responsibility for keeping the passage open—with American support. However, most countries have so far reportedly resisted his proposal.

Trump said China gets about 90% of its oil from the strait, while the US gets only a minimal amount. He declined to discuss whether China would join the coalition.

Currently, only a tiny fraction of the vessels that used to navigate the strategic waterway have been able to pass through, while some have ended up in flames, disrupting energy supplies.

Iran’s attempt to inflict maximum pain on the global economy in retaliation for US-Israeli strikes has all but shut the narrow strait through which 20% of global crude and LNG normally pass.

The US-Israel conflict with Iran and the counterattacks have entered their third week, as leaders show no signs of de-escalation. Tehran has extended its drone and missile attacks on neighbouring countries, including oil fields across the Gulf region.

Iran is also targeting infrastructure, while the Israeli military reportedly said it had begun a “wide-scale wave of strikes” across Iran’s capital and was stepping up attacks on Iran-backed Hezbollah militants in Lebanon.

Although higher energy prices have impacted Asian stocks the most in March, US stocks have held up better on expectations that the economic repercussions will be less severe.

US Federal Reserve meet in focus

Meanwhile, the US Federal Reserve will announce its policy decision on March 18, where policymakers are widely expected to hold rates steady, with traders anticipating only one 25-basis-point cut, possibly in September.

February inflation came in line with forecasts, showing stable but above-target CPI. However, concerns have mounted that higher energy prices will fuel inflation in March, as Brent crude prices are up 26% so far this month.

The Fed began the year by leaving rates unchanged in the range of 3.5% to 3.75% at its January meeting. Prior to this, it had announced three consecutive rate cuts to support the economy.

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