Wall Street ends down as traders see no rate cuts before 2027

By Noel Randewich and Utkarsh Hathi

March 19 (Reuters) - Wall ‌Street ended lower ​on Thursday, ​with declines in Micron Technology and Tesla, as worries about inflation stemming from soaring oil prices left investors pessimistic about the potential for future interest rate cuts.

Investors focused on warnings by Federal ‌Reserve Chair Jerome Powell on Wednesday that the economic outlook remains uncertain amid a U.S.-Israeli ⁠war with Iran that has sent energy prices soaring and created fears of inflation. The Fed left rates unchanged, as expected.

Interest rate futures ‌suggest traders see little chance of interest ‌rate cuts before mid-2027, according to the CME's FedWatch tool.

Echoing the Fed, the Bank of England and European Central Bank held their interest rates steady and pointed to uncertainty arising from the Middle East conflict.

'A REAL ​INFLATION RISK'

"The market is digesting a little bit more of Powell and what some other central banks said overnight, that this is a real inflation risk," said Mike Dickson, head of research and quantitative strategies at ⁠Horizon Investments in Charlotte, North Carolina.

Brent crude was up but well off session highs of $119 a barrel after Iran attacked energy targets overnight in the ​Middle East, leading the U.S. government to take steps to expand supply.

Micron Technology dropped 3.8% after the memory chipmaker's quarterly forecast failed to impress investors who have sent its shares ​soaring over 50% this year on strong demand related to ‌AI. Nvidia, the world's most valuable company, lost 1%.

Tesla slid 3.2%. The National Highway Traffic Safety Administration escalated its probe into 3.2 million Tesla vehicles with Full Self-Driving driver-assistance on ⁠concerns the system may fail to detect or warn drivers in poor visibility.

The S&P 500 declined 0.27% to end the session at 6,606.49 points.

The Nasdaq declined 0.28% to 22,090.69 points, while the Dow Jones Industrial Average declined 0.44% to 46,021.43 points.

Eight of the ⁠11 S&P 500 sector indexes declined, led lower by materials, down 1.55%, followed by a 0.87% loss in consumer discretionary.

The S&P 500, ​Nasdaq and Dow were below their 200-day moving averages, underscoring a loss of momentum in the market.

The S&P 500 has lost over 3% in 2026 and is trading at four-month lows.

Prices of precious metals declined, with miners Newmont and Freeport-McMoRan down 6.9% and ‌3.3%, respectively.

Data on Thursday showed weekly jobless claims unexpectedly fell last week, pointing to stable labor-market conditions and a rebound in job growth in March.

Declining stocks outnumbered rising ones ‌within the S&P 500 by a 1.4-to-one ratio.

The S&P 500 posted 17 new highs and 26 new lows; the Nasdaq recorded ⁠30 new highs and 276 new lows.

Volume ‌on U.S. exchanges was 20 billion ​shares traded, about average with the 20 most recent sessions.

(Reporting by Johann M Cherian and Utkarsh Hathi in Bengaluru, and by Noel Randewich in San Francisco; Editing by Devika Syamnath, Anil D'Silva, ‌Rod Nickel)

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