Morning Preview: March 20, 2026

Market Overview

U.S. futures are trending lower as of last night, reflecting ongoing weakness in European and Asian markets. This decline is attributed to rising Treasury yields and inflation concerns, compounded by escalating tensions in the Middle East following Israel's recent airstrikes on Tehran. These strikes coincided with the Persian New Year (Nowruz), further intensifying regional instability. Brent oil prices are on the rise again after a brief dip, as Iran continues its military actions against Arab states in the Persian Gulf, despite Israel's restraint from targeting Iran's energy infrastructure.

Key Market Indicators

• Dow: -299.00 points (-0.65%) at 46,042
• S&P 500: -46.25 points (-0.70%) at 6,613
• Nasdaq: -229.50 points (-0.93%) at 24,350

Global Market Performance

In Asian markets, the Nikkei Index was closed after a significant drop of -3.3% the previous day. The Shanghai Index fell by 49 points (1.24%) to settle at 3,957, while the Hang Seng Index dropped 223 points to 25,277. In Europe, the German DAX decreased by 50 points to 22,788, and the FTSE 100 slipped by 32 points to 10,030. Overall, oil prices are set for another week of gains, while stocks are on track for a weekly loss.

Quadruple Witching Day

Today marks quadruple witching OpEx Day, which involves the simultaneous expiration of four types of derivative contracts. Approximately $5.7 trillion in notional options tied to U.S. stocks, indexes, and ETFs are set to expire, marking the largest March expiry recorded by Citigroup since 1996.

Treasury Yields

U.S. Treasury yields have risen, particularly at the front end of the curve, with two-year yields reaching a seven-month high. This morning, yields continued to climb in response to hawkish comments from central banks and sustained high Brent crude oil prices, which remain above $100 per barrel. Two-year yields increased by four basis points to 3.83%, while five-year yields rose by three points to 3.91%.

Market Closing Prices from Previous Day

• S&P 500: -18.21 points (-0.27%) at 6,606.49
• Dow Jones: -203.72 points (-0.44%) at 46,021.43
• Nasdaq Composite: -61.73 points (-0.28%) at 22,090.69
• Russell 2000: +16.07 points (+0.65%) at 2,494.71

Economic Calendar

1:00 PM ET: Baker Hughes Weekly rig count data

Earnings Calendar

Earnings Before the Open: XPEV

Sector News Breakdown

Consumer Sector

• Tesla (TSLA) plans to invest $2.9 billion in equipment for solar panel manufacturing.
• Scholastic Corp. (SCHL) reported Q3 adjusted EPS of ($0.15) against an estimate of ($0.37).
• Torrid Holdings (CURV) reported Q4 EPS of ($0.08) against an estimate of ($0.12).
• Unilever (UL) is in talks to sell its food business to McCormick & Company (MKC).

Energy, Industrials, and Materials

• FedEx (FDX) reported Q3 adjusted EPS of $5.25, exceeding consensus estimates.
• Mosaic (MOS) downgraded to Sell due to the impact of the Middle East conflict on the fertilizer market.

Financials

• Blackstone Inc. (BX) plans to sell bonds backed by its $82.5 billion assets.

Healthcare

• Rhythm Pharmaceuticals (RYTM) received FDA approval for its treatment for acquired hypothalamic obesity.

Technology, Media & Telecom

• Nvidia's (NVDA) licensing deal with AI startup Groq is under antitrust scrutiny.
• Super Micro Computer Inc. (SMCI) shares fell after legal issues involving its co-founder.