March 18, 2026
S&P futures are up 0.5% Wednesday morning, extending this week’s equity rebound after back-to-back gains. Leadership continues to skew toward high beta and positioning-driven areas, including most-shorted names, retail favorites, small caps, travel & leisure, energy, and private equity. Global markets are supportive, with Asia higher (South Korea +5%, Japan +3%) and Europe up 0.8%. Treasuries are rallying (yields -2 bp), the dollar is slightly firmer, while gold (-0.4%), silver (-0.5%), bitcoin (-0.6%), and WTI crude (-1.4%) are all lower.
The tone remains firmer despite mixed Middle East headlines, including ongoing Iranian attacks, partial resumption of Iraqi oil exports, and continued uncertainty around U.S. efforts to reopen the Strait of Hormuz. Markets appear less sensitive to geopolitics in the near term, with positioning/hedging dynamics and improving corporate newsflow (AI, airlines) helping support risk appetite.
Focus today is on February PPI and the March FOMC decision this afternoon. The Fed is widely expected to hold rates at 3.5–3.75%, with the SEP likely signaling higher 2026 inflation and the dot plot still pointing to one cut in both 2026 and 2027. Powell’s press conference will be key. Thursday brings claims, Philly Fed, and new home sales.
Company news (highlights):
- NVIDIA (NVDA) resuming chip manufacturing for China.
- Microsoft (MSFT) reportedly considering legal action vs Amazon (AMZN) and OpenAI over a $50B cloud deal.
- Amazon (AMZN) also planning to reduce reliance on USPS shipping.
- Alibaba (BABA) raising AI computing and storage prices; Tencent (TCEHY) posted another quarter of double-digit growth.
- Lululemon (LULU) beat Q4 but guided FY26 EPS below expectations on margin pressure.
- DocuSign (DOCU) beat and guided ahead, announcing a $2B buyback.
- HealthEquity (HQY) beat and raised guidance.
- Titan America (TTAM) flagged residential weakness and energy cost pressures in guidance.
- Anduril (ANDG) beat and raised in its first report post-IPO.
U.S. equities extended gains for a second straight session on Tuesday with the Dow +0.10%, S&P 500 +0.25%, Nasdaq +0.47%, and Russell 2000 +0.67%, marking the first back-to-back advance for the S&P since late February. The move came despite ongoing geopolitical instability, with Treasury yields easing slightly (10Y -2 bp), the dollar modestly weaker (-0.1%), and WTI crude rising 2.9% after Monday’s sharp pullback.
The Iran conflict remains unresolved, with continued attacks on Gulf energy infrastructure and Israeli strikes on Iranian leadership. However, markets found some support from partial oil flow through the Strait of Hormuz and IEA signaling willingness for additional reserve releases. Equity resilience continues to be attributed to positioning/hedging support, a recent reprieve in rates, and ongoing AI-driven earnings optimism, particularly ahead of this week’s key events.
Economic data was mixed but leaned constructive. February pending home sales rose 1.8% m/m, well above expectations for a decline, while the $13B 20-year Treasury auction was well received, stopping through by 0.7 bp. Focus now shifts to Wednesday’s PPI release and the March FOMC decision, where the Fed is expected to hold rates at 3.5–3.75% and signal higher inflation expectations in 2026.
Sector Highlights
Sector performance reflected a modest risk-on tone, though leadership was somewhat uneven. Energy (+1.02%) led, supported by the rebound in crude, followed by Consumer Discretionary (+1.00%) and Communication Services (+0.67%), driven by strength in travel, airlines, and big tech. Financials (+0.51%) also outperformed, with gains across banks, brokers, and credit card names. Most other sectors posted smaller gains, including Industrials (+0.25%), Technology (+0.21%), Real Estate (+0.20%), and Materials (+0.18%). Defensive areas lagged, with Healthcare (-0.92%) the weakest, followed by Consumer Staples (-0.48%) and Utilities (-0.26%), reflecting a rotation away from defensives.
Information Technology
- Amazon (AMZN) CEO said AWS revenue could reach $600B by 2036, doubling prior estimates on AI demand.
- Qualcomm (QCOM) announced a $20B share repurchase authorization and raised its dividend.
- NVIDIA (NVDA) partnered with Uber (UBER) to support Level 4 autonomous taxis.
- Semtech (SMTC) declined despite a modest earnings beat, with guidance seen as underwhelming.
Communication Services
- Meta Platforms (META) reportedly planning layoffs impacting 20%+ of workforce, with estimates suggesting ~$5B in potential cost savings.
Financials
- Mastercard (MA) is acquiring stablecoin infrastructure firm BVNK for ~$1.8B.
- SoFi Technologies (SOFI) declined following a negative short report from Muddy Waters.
Industrials
- Boeing (BA) said its commercial aircraft division is now expected to turn profitable in 2027, later than previously anticipated.
- Honeywell (HON) warned the Middle East conflict will weigh on Q1 results.
- AeroVironment (AVAV) acquired Empirical Systems Aerospace for ~$200M.
Consumer Discretionary
- Airlines including Delta Air Lines (DAL), American Airlines (AAL), and JetBlue (JBLU) raised aspects of Q1 guidance, citing improving demand trends.
- Kraft Heinz (KHC) is reportedly launching healthier product offerings.
- Academy Sports and Outdoors (ASO) fell sharply after weak earnings and guidance, citing continued consumer pressure.
Real Estate
- Public Storage (PSA) agreed to acquire National Storage Affiliates Trust (NSA) in a ~$10.5B all-stock deal.
Healthcare
- Eli Lilly (LLY) declined following a downgrade citing concerns around obesity drug competition and pricing pressure.
- Cencora (COR) fell after announcing its CFO will retire in mid-2026.
Eco Data Releases | Wednesday March 18th, 2026
S&P 500 Constituent Earnings Announcements | Wednesday March 18th, 2026
Data sourced from FactSet Research Systems Inc.
