2026.3.18 US Market Close | AI Momentum Continues Amid Caution Ahead of Fed Meeting

On March 18, the New York stock market saw all three major indices close higher, buoyed by AI momentum from Nvidia's GTC conference, despite caution ahead of the Fed's FOMC meeting. It was a day of mixed signals, with the market weighing inflation concerns from rising oil prices against optimism for AI technology stocks. - Dow Jones: +0.1% - A slight gain amid a wait-and-see approach for the FOMC. - S&P 500: +0.25% - Closed higher, lifted by strength in tech stocks. - Nasdaq: +0.47% - Fueled by AI optimism stemming from Nvidia's GTC conference. Key Issues - FOMC Caution and Surging Oil Prices: Inflation fears grew as West Texas Intermediate (WTI) crude oil jumped over 1.8% to surpass $95 a barrel amid conflict in Iran. This increased uncertainty about the Fed's monetary policy, with the probability of a rate cut within the year falling to 68%. - Nvidia's GTC Conference: Nvidia presented a blueprint for achieving $1 trillion in cumulative revenue by 2027, boosting sentiment across the entire AI ecosystem. This became a major driver for the tech-led market rally. - Booking Holdings' Mixed Picture: The stock rose on expectations of its evolution into an AI-powered 'Connected Trip' ecosystem. However, structural risks also came into focus, including regulations from the European Union's Digital Markets Act (DMA) and a €485 million fine imposed in Spain. - Key Economic Events This Week: Important market-moving data releases are scheduled, including the FOMC meeting results and dot plot on the 20th, February Housing Starts on the 19th, and March Manufacturing and Services PMI on the 21st. Key Stocks - Nvidia (NVDA): -0.7% - Despite presenting a rosy outlook at its GTC conference, the stock closed down due to profit-taking as much of the optimism was already priced in. - SoundHound AI: +3% - Gained market attention after showcasing its in-vehicle voice AI platform at GTC. - Booking Holdings (BKNG): +3% - The stock was lifted by growth expectations for its transformation into a comprehensive travel platform utilizing AI technology.