Stocks Slip Before the Open as Oil Prices Advance, U.S. Economic Data and FedEx Earnings on Tap

Market Overview - Wall Street's three main equity benchmarks closed lower, with the Magnificent Seven stocks declining, including Amazon.com (AMZN) down over -2% and Microsoft (MSFT) down more than -1% [1] - Cryptocurrency-exposed stocks also fell, with Bitcoin dropping more than -4%, leading to a slump in Strategy (MSTR) by over -6% and Riot Platforms (RIOT) by about -4% [1] - The Trade Desk (TTD) plunged more than -6% after a downgrade from Rosenblatt [1] - LyondellBasell (LYB) was the top gainer on the S&P 500, climbing over +5% after an upgrade from UBS [1] Economic Data - U.S. producer price index (PPI) for final demand rose +0.7% month-over-month (m/m) and +3.4% year-over-year (y/y) in February, exceeding expectations [5] - Core PPI, excluding food and energy, rose +0.5% m/m and +3.9% y/y, also stronger than anticipated [5] - U.S. factory orders for January increased by +0.1% m/m, in line with expectations [5] Federal Reserve Actions - The Federal Reserve left interest rates unchanged in a range of 3.50%-3.75%, with a vote of 11-1 [6] - Policymakers highlighted uncertainty due to the Middle East conflict and raised the 2026 inflation forecast to 2.7% from 2.4% [6] - Fed Chair Jerome Powell indicated that further progress in reducing inflation is necessary before considering rate cuts [7] Upcoming Economic Indicators - Investors are awaiting U.S. Initial Jobless Claims data, expected at 215K, and the Philadelphia Fed Manufacturing Index, anticipated to be at 8.3 [8] - New Home Sales data for January is forecasted at 722K, down from 745K in December [9] - The Conference Board's Leading Economic Index is expected to drop -0.1% m/m [10] International Market Reactions - The Euro Stoxx 50 Index fell -1.64%, influenced by rising oil and gas prices due to the Middle East conflict [12] - The U.K. unemployment rate remained at 5.2%, while average earnings ex-bonus were at 3.8%, weaker than expected [13] - Japan's Nikkei 225 Index closed sharply lower, influenced by rising oil prices and the Fed's decision to keep rates unchanged [15] Corporate Earnings - High-profile companies such as Accenture (ACN), FedEx (FDX), and Darden Restaurants (DRI) are set to report quarterly figures [10] - Micron Technology (MU) fell over -5% in pre-market trading due to increased spending on production despite positive earnings guidance [18] - Five Below (FIVE) rose more than +6% after posting strong Q4 results and guidance [19]