March 20, 2026
S&P futures are down 0.7% Friday morning after Thursday’s modest decline. Recent weakness has been led by big tech, A&D, homebuilders, chemicals, metals, and rails. Asia was mostly lower (Greater China lagging), while Europe is higher (~+0.7%). Treasuries are under pressure (front-end yields +~5 bp), the dollar is slightly firmer, while gold (+1.7%) and silver (+2.5%) are rebounding. Bitcoin is flat to slightly higher, and oil is mixed (WTI flat, Brent +1.1%).
The key macro driver is rising yields and a more hawkish rate outlook, with markets now pricing <5 bp of Fed cuts in 2026, down sharply from ~60 bp last month. Geopolitics remain a secondary but persistent overhang, with mixed signals around de-escalation and ongoing energy infrastructure risks in the Middle East, alongside uncertainty around efforts to reopen the Strait of Hormuz.
Company news (highlights):
- FedEx (FDX) beat FQ3 estimates, raised FY guidance, and expects to exceed its $1B cost-savings target.
- Unilever (UL) reportedly in talks to spin off its food business and merge it with McCormick & Company (MKC).
- Super Micro Computer (SMCI) fell sharply after a co-founder was charged with illegally diverting Nvidia servers to China.
- OpenAI is reportedly developing a desktop app integrating ChatGPT, Codex, and a browser (“Atlas”).
U.S. equities finished mostly lower in a choppy Thursday session, with the Dow -0.44%, S&P 500 -0.27% (closing just below its 200-day moving average), Nasdaq -0.28%, while the Russell 2000 +0.65% outperformed. The macro backdrop remains dominated by geopolitical risk, elevated energy prices, and tighter financial conditions.
Markets continue to wrestle with ongoing disruptions to Middle East energy infrastructure and uncertainty around the duration of the Iran conflict, with the Strait of Hormuz still constrained and risks of broader supply shocks lingering. At the same time, demand-destruction concerns tied to higher energy prices, alongside hawkish central bank reaction functions, are keeping pressure on equities. Despite this, markets remain highly sensitive to any signs of de-escalation, with intermittent headlines (including Netanyahu comments) briefly improving sentiment.
Rates and FX dynamics were mixed but notable. Treasuries flattened, with front-end yields coming off earlier highs after the 2Y briefly approached 4%, while the dollar weakened sharply (-0.9%). Commodities saw significant downside pressure outside of energy, with gold (-5.9%) and silver (-8.2%) sharply lower, alongside copper (-2.1%), reflecting both positioning unwind and shifting Fed expectations. Oil finished modestly higher but well off intraday highs.
Economic data was mixed. Initial jobless claims fell to 205K, reinforcing labor market resilience, while the Philly Fed manufacturing index surprised to the upside (18.1). However, January new home sales disappointed sharply (587K vs 720K consensus), with some weather-related drag noted.
Sector Highlights
Energy (+1.48%) was the clear outperformer, supported by elevated crude prices, while Financials (+0.03%) and Technology (~flat) held up relatively well. On the downside, Materials (-1.55%) led declines, pressured by weakness in metals, followed by Consumer Discretionary (-0.87%) and Consumer Staples (-0.84%). Industrials (-0.67%), Communication Services (-0.58%), Utilities (-0.47%), and Healthcare (-0.39%) also lagged, highlighting broad-based weakness despite pockets of relative strength.
Information Technology
- Micron Technology (MU) declined post-earnings despite strong results and guidance, with investor focus on elevated expectations and peak margin concerns.
- Accenture (ACN) beat on EPS and revenue, though bookings growth decelerated sharply.
- Apple (AAPL) highlighted as an AI beneficiary via its App Store (~$1B revenue contribution).
Communication Services
- Alibaba (BABA) fell after a broad Q3 miss, though cloud and AI growth remained solid; management highlighted ongoing compute constraints.
Consumer Discretionary
- Five Below (FIVE) rallied on strong comps, merchandising momentum, and upbeat forward guidance.
- Darden Restaurants (DRI) posted solid comps and raised full-year guidance.
- Signet Jewelers (SIG) surged on a Q4 beat and margin expansion.
Financials
- Two Harbors Investment (TWO) jumped after receiving an unsolicited acquisition proposal (~12% premium).
- dLocal (DLO) gained on strong TPV growth and a new $300M buyback program.
Industrials
- Rivian (RIVN) rose after Uber (UBER) committed up to $1.25B to support a robotaxi fleet rollout.
Healthcare
- Align Technology (ALGN) advanced on reports of an Elliott activist stake.
Information Technology / AI
- SoundHound AI (SOUN) declined following news of its CFO departure.
Industrials / Defense
- Red Cat Holdings (RCAT) dropped sharply on an earnings miss and lack of forward guidance, despite strong YTD performance.
Eco Data Releases | Friday March 20th, 2026
No releases today
S&P 500 Constituent Earnings Announcements | Friday March 20th, 2026
No constituents report today
Data sourced from FactSet Research Systems Inc.
