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March 18, 2026 – 13:06

(Bloomberg) — Stocks rose across the world as sharp swings in oil markets subsided while traders awaited Wednesday’s Federal Reserve meeting.

Futures for the S&P 500 climbed 0.3% after the benchmark posted its first back-to-back advance since the outbreak of the war in the Middle East. Brent rose modestly above $104 a barrel after an Iranian report of an attack on a giant gas field shared between Tehran and Qatar. West Texas Intermediate traded within its narrowest range this month.

Global bonds pared gains following news of the attack, with the yield on 10-year Treasuries falling two basis points to 4.18%. The dollar was little changed, while gold hit a one-month low.

“The last couple of weeks have been about trying to protect portfolios from oil’s record rally,” said Carl Dooley, head of EMEA trading at TD Cowen. “As the speed of that curve slows, or even retraces, with the commodity’s implied volatility starting to subside, equities are finding a floor.”

Markets remain on high alert over the Middle East conflict and the risk that a near-closure of the Strait of Hormuz stokes inflation. How policymakers respond is now top of mind for investors, with the Fed expected to hold rates unchanged for a second straight meeting.

Fed Chair Jerome Powell will likely emphasize that officials need more time to see how long the conflict with Iran lasts and to assess how it might ripple through to growth and inflation. He’s also likely to highlight the elevated level of uncertainty and the Fed’s need to keep its options open.

“The market wants to understand where the Fed is leaning next,” said Stephanie Niven, portfolio manager at Ninety One. “Any shift in the median dot, any slight changes, will be really focused on.”

Renewed optimism for artificial intelligence drove technology stocks higher ahead of memory chipmaker Micron Technology Inc.’s earnings, due after the close. The stock has soared more than 60% this year, the sixth-best performance in the S&P 500 Index, after jumping 239% in 2025.

Micron, Sandisk Corp. and Seagate Technology Holdings Plc advanced more than 2% in premarket trading. Most members of the Magnificent Seven megacaps posted gains. Nasdaq 100 futures climbed 0.3%.

AI stocks in China got a lift after Nvidia Chief Executive Officer Jensen Huang said OpenClaw, an agent that uses large language models to perform tasks like hailing a ride and booking restaurants, was “definitely the next ChatGPT.”

In Europe, the Stoxx 600 touched its highest level in more than a week. Asian shares climbed 1.9%, led by gains in South Korea’s Kospi as Samsung Electronics Co. jumped more than 7%.

The ebbing volatility in crude prices comes even though the Middle East conflict showing no sign of ending. Iranian attacks on Israel and Arab states in the Persian Gulf continued overnight, with the Islamic Republic’s military vowing to avenge the assassination of security chief Ali Larijani.

Israel said Wednesday that Iranian intelligence minister, Esmaeil Khatib was killed. Earlier, President Donald Trump said the US could end the war with the Islamic Republic “in the near future.”

“Equity markets are following the oil price quite closely, and at this stage what we’re seeing is perhaps that they are pricing in the most positive outcome,” said Nina Stanojevic, investment specialist at St. James’s Place. “That, I think, leaves equity markets quite vulnerable.”

What Bloomberg Strategists Say…

“There has been considerable debate over whether risk assets have fallen enough. That this question is still being asked suggests sentiment has not reached peak bearishness and the worst is likely not over.”

— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.

Corporate Highlights:

Unilever Plc, the maker of Hellmann’s mayonnaise, is in the early stages of considering a separation of its food assets as it seeks growth from beauty, personal care and wellbeing brands, people with knowledge of the matter said. UniCredit SpA Chief Executive Officer Andrea Orcel said his takeover bid for Commerzbank AG is designed to bring about negotiations between the stakeholders. BHP Group has appointed Brandon Craig as its new chief executive, as the world’s biggest miner grapples with the ripple effects of a war in the Middle East, a cooling Chinese economy and the wider industry’s shift toward growth, particularly in copper. Tencent Holdings Ltd. posted a 13% rise in quarterly revenue, underscoring solid momentum in its core gaming and advertising units while it ramps up a bet on agentic AI. Samsung Electronics Co. is considering a shift toward multi-year contracts for memory chips, a much longer timeframe than is typical that may help stabilize supply and ease concerns about a shortage of the essential components. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.4% as of 6:58 a.m. New York time Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 rose 0.5% The MSCI World Index rose 0.3% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1540 The British pound was little changed at $1.3355 The Japanese yen was little changed at 159.01 per dollar Cryptocurrencies

Bitcoin fell 0.8% to $73,908.37 Ether fell 0.8% to $2,310.79 Bonds

The yield on 10-year Treasuries declined two basis points to 4.18% Germany’s 10-year yield declined three basis points to 2.88% Britain’s 10-year yield declined five basis points to 4.65% Commodities

West Texas Intermediate crude fell 1.5% to $94.77 a barrel Spot gold fell 0.8% to $4,963.40 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sujata Rao, Subrat Patnaik, James Hirai and Neil Campling.

©2026 Bloomberg L.P.