March S&P 500 E-Mini futures (ESH26) are trending up +0.50% this morning as oil prices retreated, while investors awaited the Federal Reserve’s interest rate decision, crucial U.S. producer inflation data, and an earnings report from chip maker Micron.
The price of WTI crude fell over -1% after Iraq struck a deal to export its oil through the Kurdistan region to Turkey’s Ceyhan port. The news helped ease investor concerns about the Middle East conflict’s disruption of crude shipments. However, oil flows through the Strait of Hormuz remain largely restricted, and Iran continues to target key energy infrastructure in the region. U.S. Central Command said late Tuesday that it had dropped multiple 5,000-pound bombs on missile sites along Iran’s coastline near the Strait of Hormuz. The drop in oil prices drove the 10-year T-note yield down by 2 basis points to 4.18%, boosting investors’ risk appetite.
